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Rupee ends at lifetime low against US currency

14 Jul 2022 Evaluate

Continuing previous session downfall, rupee settled at a new record low against US currency on Thursday after the US consumer price index rose to a multi-year high of 9.1 percent in June that fuelled the speculation that the US Federal Reserve will raise interest rates aggressively to tame soaring prices. Traders were also worried as India’s trade deficit ballooned to a record of $26.18 billion, according to government data. The trade deficit stood at $9.60 billion in June 2021. Imports expanded by 57.55 percent to $66.31 billion in June compared to the year-ago month, the data showed, while India's merchandise exports in June grew by 23.52 percent to $40.13 billion. On the global front, sterling fell on Thursday as another bout of risk aversion sent investors snapping up dollars and selling currencies deemed riskier when the outlook is so uncertain.

Finally, the rupee ended at 79.99 (provisional), weaker by 18 paisa from its previous close of 79.81 on Wednesday. The currency touched a high and low of 79.99 and 79.71 respectively.

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