By Malvika Gurung
Investing.com -- The Indian rupee fell to a record low on Tuesday, weakening against the US dollar, as the greenback witnessed broad gains in currency due to a fall in offshore markets. Besides, domestic traders are tracking movements on Dalal Street for indications of cash flows.
The domestic currency fell to a record low of 77.73/$1 level on Tuesday, after closing at 77.45/$1 on Friday, as forex markets remained closed on Monday due to Buddha Purnima.
The 1-month non-deliverable forward was trading at 77.96/97 to the dollar, stated Reuters. The US dollar index has surged 9% so far in 2022. Besides, the erratic selling by foreign investors over the past months have added to the rupee's decline. FIIs have offloaded Rs 1.52 lakh crore in 2022 yet.
“The risk-off mode continues to dominate the market, as the major recession fears were ignited after the Chinese retail data for April showed a contraction of 11%, the biggest fall since March 2020,” stated CR Forex Advisors.
Market traders are looking forward to the central bank RBI’s intervention to keep the Indian rupee from further declining in the session.
Further, oil prices too have surged over the past few sessions and were hovering at their highest levels in almost eight weeks on Tuesday. Crude Oil WTI Futures has rallied over 14% in only four sessions.
The domestic market has been desperately eyeing the country’s insurance behemoth LIC’s listing on the Indian bourses today, which has made a tepid debut on the Street listing at a discount of 9% at Rs 867.2/share on BSE and at an 8.11% discount on the NSE.
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