Indian rupee concluded weaker on Monday and breached 78 mark against the US dollar for the first time amid fears of aggressive interest rate hike by U.S. Federal Reserve later this week. May consumer inflation hit a fresh 40-year high of 8.6 per cent in the US. The partially convertible rupee fell to a record low of 78.14 against the US dollar on stronger demand. Traders were worried as RBI data showed that after rising for two consecutive weeks, the country’s foreign exchange reserves declined by $306 million to $601.057 billion in the week ended June 3. Also, recent upsurge in crude oil prices have put pressure on the domestic currency. Brent crude oil price has hovering near $120 per barrel. High oil price is expected widen trade deficit. On the global front, dollar gained to fresh two-decade highs versus major rival currencies on Monday, supported by fears over a global economic slowdown and bets on steep interest rate hikes by the U.S. Federal Reserve.
Finally, the rupee ended at 78.04 (Provisional), weaker by 11 paise from its previous close of 77.93 on Friday. The currency touched a high and low of 78.29 and 78.04 respectively.
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