Even as the dollar took a breather after heavy gains and global stocks tumbled on increasing concerns that aggressive tightening by global central banks could choke growth, the rupee closes at a new all-time low of 77.73 against the dollar, the fifth record weak close in the last ten trading sessions.
The partially convertible rupee fell to a lifetime low of 77.73 per dollar, according to Bloomberg, while PTI reported that the currency finished provisionally at 77.72 per dollar.
In intra-day trade, the rupee opened lower at 77.72 against the dollar on the interbank foreign currency market, ranging between 77.76 and 77.63.
Worries over high inflation and an economic downturn drove the rupee to a record low of roughly 77.61 against the dollar on Wednesday.
The rupee has closed at a new lifetime low for the fifth time in the previous 10 days, but the currency’s losses could have been far greater if the Reserve Bank of India had not intervened.
Since the rupee touched a record low for the first time this year in March, days after Russia invaded Ukraine, India’s central bank has safeguarded the currency by burning up its foreign exchange reserves.
The fight on Europe’s outskirts has dragged on global risk assets, raising concerns about a further push to already-high inflation and the impact of subsequent central bank intervention on economic development.The rupee was also affected by a sharp drop in Indian equities benchmarks.