The Indian rupee has broken over the 77-per-dollar barrier for the first time, owing to rising and a growing trade deficit The rupee was trading at 77.32 per dollar, 41 paise lower than its previous cloese lkThe US Federal Reserve’s hawkish posture has resulted in higher US bond yields, with the dollar index reaching a 20-year high The RBI has been robust in its intervention in the foreign exchange market in the past, and was seen protecting the Rs 77 per dollar levels As a result, foreign exchange reserves have fallen by roughly $45 billion from their all-time high of $642 billion, which was recorded for the week ending September 3, 2021 According to the most recent figures issued by the RBI on Friday, the country’s foreign exchange reserves dipped to $598 billion for the week ending April 29.
Risk appetite has diminished, according to forex traders, due to growing fears about inflation, which may prompt more aggressive rate hikes by global central banks.
The dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.35 percent at 104.02, reflecting rising US yields and concerns about higher interest rates Furthermore, Asian and developing market rivals began the day badly and likely impact on mood The 30-share Sensex was trading 737 points, or 1.34 percent, lower at 54,098.58 points, while the wider NSE Nifty was down 220.25 points, or 1.34 percent, at 16,191.00 points.
Brent crude futures increased 0.14 percent to USD 112.55 per barrel, the global oil benchmark According to stock exchange data, foreign institutional investors were net sellers in the capital market on Friday, offloading shares worth Rs 5,517.08 crore.
