In trading on May 12, 2022, the national currency, the rupee, plunged to a new record low of 77.5875 per US dollar. The currency opened at 77.40 vs. the previous day’s close at 77.41. Before today the Rupee reached a record low on Monday (May 9, 2022) of 77.44 against the USD.
The domestic unit has been under pressure due to weakness in global equities, the FII sale continued. Additionally, continued gains in the dollar index fueled by the weak global economic outlook and aggressive tightening measures also add to the currency’s woes.
Also, Crude Oil is still on the higher side above $100 per bbl, with Brent Crude trading at $106 per barrel at the end. Remember, India imports most of its crude oil requirement, which drives up inflation and widens the country’s CAD.
Meanwhile, Indian equities are trading down 1.7% sharply, with Nifty breaking above 16,000 levels and last trading at 15,884. Broader markets and Nifty bank are underperforming major indices.
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Story first published: Thursday, May 12, 2022, 10:28 AM [IST]