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Rupee hits record low against dollar on Tuesday

28 Jun 2022 Evaluate

Indian rupee slumped to a fresh record low against the US dollar on Tuesday, primarily due to a sell-off in equities, rising inflationary pressures, and elevated global crude oil prices. Persistent selling by foreign institutional investors (FIIs) in the domestic markets also put pressure on the rupee. As per exchange data, FIIs remained net sellers in the capital market, as they sold shares worth Rs 1,278.42 crore on Monday. Market participants paid no heed towards a report by the government think-tank NITI Aayog which estimates India’s gig economy could employ 2.35 crore people by FY30, representing a three-and-a-half-times increase over 10 years. The gig economy employed around 68 lakh people in FY20. On the global front, US dollar climbed on Tuesday on firmer oil prices while the euro held below $1.06 as European Central Bank (ECB) President Christine Lagarde offered no fresh insight on the central bank's policy outlook.  

Finally, the rupee ended at 78.85 (provisional), weaker by 48 paise from its previous close of 78.37 on Monday. The currency touched a high and low of 78.85 and 78.53 respectively.

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