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The rupee sank to close at an all-time low of 82.32 per dollar as oil marketing companies (OMCs) bought greenbacks even as crude oil prices rose, importers hedged in panic amid possibility of aggressive rate hikes by the US Fed, and the World Bank cut India’s GDP growth forecast for FY23 from 7.5 per cent to 6.5 per cent.
The Indian currency (INR) opened 32 paise weaker at 82.20 (an all time opening low) against previous close of 81.88. INR hit record intra-day low of 82.4250. The intra-day high was 82.18.
“One-year forward premium closed at ₹2.38 against previous day’s close of ₹2.20. This means importers hedged in panic. Economic data from the US seems strong. Governors of many State Feds have struck a hawkish tone on rate hike at the next meeting. This is negative for emerging market currencies, including rupee,” said the chief dealer of a private sector bank.
The central bank is believed to have intervened from 82.4250 to 82.30 level. Crude oil hardened to around $95 per barrel, up about $1.3.
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