INR Continues To Loiter Around Record Low Levels

Published on Aug 21, 2023 17:29

The Indian rupee continued to loiter around record low levels tracking wide strength in the dollar overseas. The dollar index continues to hold well above 103 mark ahead of Federal Reserve Chair Jerome Powell`s address at the central bank`s annual symposium in Jackson Hole, Wyoming later this week. The Fed statements sounded hawkish in its recent policy as the central bank reinstated that upside risk to inflation remains and further interest rate tightening may be warranted. Waning risk sentiment after China trimmed its 1-year lending rate by 10bps to 3.45% and left its 5-year rate unmoved at 4.2% to aid its faltering economy is also aiding dollar sentiments. Currently, the dollar index that measures the greenback against a basket of currencies is trading lower by 0.2% at 103.06. Meanwhile, sharp rise in international crude oil prices and weak sentiments in equities kept rupee under pressure. In the spot currency market, rupee depreciated by 2 paise and settled for the day at an all-time low of 83.12 (provisional) against the US dollar. On the NSE, USDINR August futures contract ended the day at 83.15.