The currency fell to as low as $0.99945, its lowest level since mid-July, and was last down 0.4% on the day. Many analysts now believe there is a chance the rupee will return to this level this week, according to Reuters.Īfter Russia stated late on Friday that it would stop supplying European gas through the Nord Stream 1 pipeline for three days at the end of this month, the euro took the brunt of the selling pressure versus the dollar.Ĭoncern that a three-day suspension of European gas supply later this month may exacerbate an energy crisis caused the euro to briefly fall back below parity against a strong dollar on Monday and to wallow at five-week lows. There is a chance the greenback will strengthen further and if it touches 110-level by the Fed's symposium, the Reserve Bank of India may let the currency breach 80 gradually, he added.Īfter the rupee hit a record low of 80.065 on July 19, the Reserve Bank of India took proactive measures to protect the crucial level of 8- per dollar. "The dollar index's strength, weakness in the Chinese yuan and local equities is pressuring the rupee," a trader at a private bank, told Reuters. "It is quite clear that the markets still sees 80 as a level that the RBI will want to defend," the trader added.Ī volatile equities market dragged on the rupee, as investors locked-in gains after a recent rally.Īhead of the Federal Reserve's Jackson Hole symposium this week, officials from the central bank maintained their aggressive monetary tightening stance, pushing the dollar index - which compares the value of the dollar to a basket of peers - to new five-week highs. It finally settled flat at 79.84 against the US dollar.Ĭonsidering the extent of bad news, it is surprising that the rupee is still holding on the stronger side of 80, a currency trader at a private bank, told Reuters.
PTI reported that at the interbank foreign exchange market, the local currency opened weak at 79.90 and moved in a range of 79.78 to 79.92 during the session.
According to PTI, the rupee fell 4 paise to close provisionally at 79.87 against the US dollar.
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