New Delhi: The rupee today reached a record low against the dollar due to the US's protectionist stance in global trade and continued selling by foreign investors in the stock market. As of 11:30 am, the Indian currency was trading at 88.69 rupees per dollar, down 38 paise. On Monday, the previous trading day, the Indian currency had closed at 88.31 rupees per dollar.
The rupee also started today's trading on a lower note. The Indian currency opened this morning at 88.41 rupees, down 10 paise against the dollar in the interbank foreign exchange market. After today's trading began, the rupee briefly recovered by 1 paisa from its opening level to reach 88.40. However, due to the negative market sentiment, the rupee continued to fall, reaching its lowest level yet at 88.71 per dollar. Although the rupee recovered slightly by 2 paisa after this, the rupee remains under pressure in the currency market.
In the currency market so far, the rupee has been underperforming against the dollar as well as most other major international currencies. As of 11:30 am today, the rupee was trading at 119.82, down 59.07 paisa against the British Pound (GBP). Similarly, against the Euro, the rupee was trading at 104.65, down 66.18 paisa.
Ravi Chander Khurana, CEO of Khurana Securities & Financial Services, says the rupee's weakening is primarily due to US protectionist measures. The US has announced higher tariffs on Indian exports compared to other Asian countries. It has also increased the fee for H-1B visas for new applicants. These two US moves have not only increased India's export costs but are also directly impacting the IT sector.
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