Mumbai: The rupee was trading within the psychologically important level of 80 versus the US dollar on Monday at the interbank forex market. The government has underestimated the 7% fall in the currency’s value compared to the greenback, pointing out that the rupee has risen against the British pound, the euro and the Japanese yen in 2022.
The rupee slipped for the sixth consecutive session at 79.98 at the interbank foreign exchange market, down 10 paise from its previous close of 79.88 on Friday. The rupee had slipped to a low of 79.985 in intraday trade. It came under pressure after Brent crude prices again hit $104 a barrel on fears that Russia’s energy supply will be disrupted.
The rupee weakened despite a weakening dollar in international markets after the US Federal Reserve signaled that rate hikes eased from the worst fears of markets. In the after-market hours, the rupee was trading at 80 in bilateral trade, dealers said. “In market trading, the 80 barrier still remains intact,” said the head of a treasury at a private bank.
Dealers said the central bank’s defense through dollar selling was keeping the currency below the 80 level and there was no technical resistance for the currency at 80. If the central bank steps down from its sell-off dealers, the currency could go below 80 this week. Told.
Finance Minister Nirmala said, “Depreciation of a currency is likely to increase export competitiveness, which positively affects the economy. Depreciation affects imports by making them more expensive.” sitharaman in answer to a question in Parliament, He highlighted the measures taken by reserve Bank of India To promote inflow and prevent instability.
“Foreign portfolio capital outflow is a major reason for the depreciation of the Indian rupee. Foreign portfolio investors have pulled out around $14 billion from Indian equity markets so far in the financial year 2022-23,” Sitharaman said.