The rupee breached the 82 to the dollar mark yet again due to the strengthening of the dollar Index, delay in inclusion of Indian Government Securities in JPMorgan’s widely tracked emerging-market bond index and the World Bank cutting India’s GDP growth forecast for FY23 from 7.5 per cent to 6.5 per cent.
The Indian currency opened 31 paise weaker at 82.19 per dollar against previous close of 81.88. In intraday trades so far, the rupee has touched an all time low and high of 82.3675 and 82.18, respectively, per CCIL data.
Indications that the rupee will weaken came in after market hours trading on Thursday, when the rupee was dealt at 82.27.
“A breakout of a big figure (80.00) leads to a minimum depreciation of 2 to 2.5 rupees within a month of the breakout. And this time, it took just 12 sessions to cross 82.00 levels…The dollar Index bounced back from 109.80 levels to 112.12 as markets turned their focus towards the US Non-Farm Payroll and Unemployment rate data out later today. “
“Keeping oil traders in dilemma, crude oil jumped sharply overnight to $95 after OPEC+ agreed to a production cut….” said Amit Pabari, MD, CR Forex Advisors.
He noted that if crude oil again jumps above $100 per barrel, it will surely ring alarm bells and further stress the deficits and the rupee.