The Indian rupee depreciated 14 paise on Wednesday to a new all-time low of 79 against the US dollar as it opened trading on Wednesday amid ongoing foreign capital outflows and elevated crude oil prices. In the inter-bank currency, the local unit opened weakly at 78.86 against the greenback, then lost ground to as high as 79 – its all-time low, registering a 14-paise drop since the previous close. On Tuesday, the rupee fell 48 paise to close at a record low of 78.85 against the US dollar. “The rupee has fallen to 79.00 levels much earlier than expected as RBI pulls its hands and there are no sellers in the $ market and no inflows,” said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.
“Today in the evening we have the GDP data. The rupee now appears to be obscuring its previous slow depreciation and soon we could see a new figure of 80 add up. Most Asian currencies have depreciated these days and as equities can’t offer much relief, more depreciation is in the pipeline. Exporters can now wait with a stop loss of 78.75, while importers just have to buy and buy more on dips when they get it,” Bhansali added.