Rupee falls to fresh low of 83.85 against US dollar
PTC News Desk: The Indian rupee fell to an all-time low against the US dollar on Monday, tracking global stock market selling amid concerns that the US could enter a recession.
The rupee traded at 83.85 at 12.18 p.m., compared to 83.75 at the close on Friday. It opened at 83.78, topping the previous lifetime low of 83.7525 set on Friday.
Analysts believe the rupee's fall is due to global market unpredictability, worries of a US recession, and geopolitical tensions.
"U.S. recession concerns led to worries about foreign outflows from India and emerging markets," Ajay Kedia of financial services firm Kedia Advisory stated.
"The fall is attributed to concerns over a potential U.S. recession, which has spurred worries about foreign outflows from India and other emerging markets. The selloff in U.S. and Asian equities, following a disappointing U.S. jobs report, has intensified these concerns, causing significant market jitters."
The poor U.S. jobs report released on Friday showed that the economy added only 114,000 jobs in July, much below than market estimates of a 175,000 increase. Furthermore, the unemployment rate unexpectedly rose to a high of 4.3%, and wage growth slowed faster than predicted.
Kedia believes the Reserve Bank of India may allow USD/INR to rise to 83.90. He sees support at 83.45 and resistance at 83.95; breaking 83.95 might take it to 84.10/84.20.
- PTC NEWS
