Indian rupee falls to record low against dollar; FIIs Debit Rs 1.5 Lakh Cr YTD

By Malvika Gurung — The dollar fell to a record high on Tuesday, weakening against the U.S. dollar as the greenback saw large currency gains on a slide in offshore markets. Also, domestic traders follow movements on Dalal Street for cash flow insights.

The national currency fell to a record low of $77.73/$1 on Tuesday, after closing at $77.45/$1 on Friday as foreign exchange markets remained closed on Monday due to Buddha Purnima.

The 1-month non-deliverable futures contract was trading at 77.96/97 to the dollar, Reuters said. The Rupee has jumped 9% so far in 2022. Also, erratic selling by foreign investors over the past few months has contributed to the Rupee’s decline. FII has unloaded Rs 1.52 lakh crore in 2022 so far.

“Risk-free mode continues to dominate the market as fears of a major recession were sparked after Chinese retail data for April showed an 11% contraction, the biggest drop since March 2020,” said CR Forex Advisors.

Market traders are eagerly awaiting intervention from the central bank RBI to prevent the Indian Rupee from falling further during the session.

Additionally, oil prices have also risen in recent sessions and hit their highest level in nearly eight weeks on Tuesday. rallied more than 14% in just four sessions.

The domestic market is looking desperately at the listing of the country’s insurance giant LIC on Indian stock exchanges today, which made a lukewarm debut on the high street listing with a 9% discount to Rs 867.2/share on the stock market. ‘ESB and with an 8.11% discount on the NSE.