The Indian rupee has depreciated against the U.S. dollar for 11 straight weeks.
The domestic currency fell 8 paise to 79.96 against the greenback during the session, before closing at 79.88—a record low.
The rupee was 12 paise shy of 80 a dollar at close on Friday.
The rupee closed at a new low in each of the five days of the week.
As the dollar index traded in a range broadly, the trend for dollar is positive, till it is above $105. The next hurdle for the dollar can be seen around $110, hence the rupee's weak trend can be seen continued toward 80.50... 79.25 will act as resistance for rupee and a break above 79.25 will trigger short covering for rupee. The rupee range can be seen between 79.50 and 80.50 for the coming week.Jateen Trivedi, VP Research Analyst at LKP Securities
According to Anindya Banerjee, vice president, currency derivatives and interest rate derivatives at Kotak Securities, the possible acceleration in the pace of every subsequent rate hike by the U.S. Federal Reserve to tackle record high inflation can hurt flows toward emerging markets like India causing the rupee to fall further.
The consistent slide to a new low on each day of the week will likely make imports more expensive, and comes amid volatility in crude prices and 172.72% year-on-year rise in June merchandise trade deficit.
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