Rupee Off All-Time Lows, Bucking Global Risk Assets Gloomy Trend
The rupee ended almost flat on Friday, coming off its all-time lows, but it still held above 78 per dollar after hitting that level for the first time ever this week.
At the interbank forex market, the rupee opened strong at 78.03 against the greenback and witnessed an intra-day high of 78.02 and a low of 78.09. It finally ended at 78.09, registering a gain of 1 paisa over its previous close of 78.10.
That was in direct contrast to moves in global risk assets, after a week of punchy moves across asset classes.
Indeed, the dollar index, which gauges the greenback's strength against a basket of six currencies, climbed 0.71 per cent to 104.37, while world stocks headed for their weakest performance this week since the markets' pandemic meltdown in March 2020.
The 30 stock S&P BSE Sensex and the broader NSE Nifty suffered their worst week since May 2020 as leading central banks have doubled down on tighter policy to tame runaway inflation, setting investors on edge about future economic growth.
Forex dealers said a strong dollar overseas and higher crude prices likely kept the domestic unit under pressure.
Not too long ago, the rupee was last changing hands well below 77 per dollar. But after breaching that rate for the first time in March, a few days after Russia invaded Ukraine, the currency has been roiled, similar to other emerging market currencies, repeatedly hitting new record weak levels.
On Monday, the currency breached the 78 per dollar and has since held above that rate.