Rupee Hits Record Low After Breaching 89 Against US Dollar As Risk-Off Sentiment Weighs
The Indian rupee is the worst performing currency against the US Dollar among Asian currencies.
The rupee weakened past a psychologically crucial level of 89 against US dollar on Friday. The Indian currency declined 0.87% against the green back and recorded the worst intraday decline since May 8.
The Indian unit settled 70 weaker against the greenback at 89.41 a dollar on Friday. It's the lowest closing level for the rupee.
During the last leg of the session, the rupee slumped 77 paise to a record low of 89.48 against the greenback on Friday. It settled at 88.71 a dollar in the previous, accoridng to data on Bloomberg.
The India-US trade deal has been an over hang for some time. Today, the trigger is the risk-off sentiment because of the concern of artificial intelligence-led rally and volatility in the commodity prices. Secondly, forex traders hoped that the central bank would protect the 89-a-dollar level. So, when the Indian currency weakened passed the level, stop loss got triggered on short-dollar bets. So there was a flair-up in the last one hour, Kotak Securities Head of Currency and Commodity Research Anindya Banerjee said.
The positive trigger could be India striking a deal with the US in the near-term, he said.
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