By Malvika Gurung
Investing.com -- The Indian rupee extended its recent rout, tumbling to a new low of 82.7 against the US dollar on Monday after opening at a record low of 82.67 in the session.
At the time of writing, the home currency was trading at 82.39/$1 amid most Asian currencies creeping lower as the greenback steadied amid rising concerns of the Fed sticking to aggressive monetary tightening following solid US jobs data, which could trip the economy to recession.
For more information on key factors driving the rupee lower, continue reading: INR Crashes, Hits Fresh Low on Monday Amid Fed’s Hawkish Prospects & Weak Cues
“The double whammy of higher US rates and higher crude prices is back to haunt the Rupee,” states IFA Global.
In a note provided to Investing.com, Kunal Sodhani, Vice President, Global Trading Center, Shinhan Bank says, "USD has fallen back into the hands of the bulls with rampant US yields. 10Y UST yields climbed back towards 3.90% with Brent crude prices approaching $100/bbl. China reopens after the Golden week holiday, with Services PMI contracting may create some volatility. For USD/INR, 82.40 acts as support while 82.90 levels as a resistance.”
Edelweiss (NS:EDEL) Wealth Research believes that emerging pressure for crude oil prices, sustained strength in the US Dollar and volatile foreign fund flows would continue weighing on the Indian rupee.
Further, India’s external balance is likely to remain pressured. It expects the INR to move in the range of 82-83.15/$1 in October.
Read Also: RBI Rescues INR As it Hits Record Low, Sells Dollars Ahead of US Jobs Data