Today, the US dollar and weak domestic equity markets pushed Indian rupee to record lows against the greenback. After opening at 76.74, the rupee fell to a new low of 76.85, breaching last week’s low of 76.55 per US dollar. In comparison, the rupee had settled at 76.44 in the previous session, which was also an all-time closing low for the Indian currency.
‘Risk aversion and flight to safety has returned in global markets. US treasury yields are lower, commodities and commodity currencies are weak, equities are weak and we are seeing broad USD strength,’said Abhishek Goenka, founder and CEO of IFA Global.
Other Asian currencies were also weaker against the US dollar today. The US dollar index, which tracks the movement of the greenback against six other major currencies, was up about 0.50 per cent to 99.98. Meanwhile, Indian stock markets are to flat-to-lower today.
The dollar has strengthened despite data released yesterday showed US retail sales fell 8.7 per cent in March, the biggest decline since tracking began in 1992, underlining fears that damage to the economy from the coronavirus outbreak will be deep and protracted.
Read EquityPandit’s Nifty Outlook for the Week