The Indian rupee hits a fresh record low against the U.S. dollar on July 11 amid weakness in the domestic stock market and as concerns about global economic growth continued to support the safe-haven greenback. The partially convertible rupee was trading at 79.41 per dollar compared to its previous close of 79.25 on Friday. The unit had hit its previous lifetime low of 79.3750 last week.
At the Interbank foreign exchange, the rupee opened weak at 79.30 against the American dollar and declined further to quote at 79.33, a decline of 7 paise over its previous close. In initial trade, the local currency witnessed a high of 79.24 and a low of 79.35 against the U.S. dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.31 percent to 107.34.
While oil markets were unsteady on Monday, with Brent trading higher on supply concerns while West Texas Intermediate (WTI) dipped, as traders weighed supply concerns against worries about a recession or China’s COVID-19 curbs hitting demand. Global oil benchmark Brent crude futures declined 0.63 percent to USD 106.35 per barrel.
“The dollar could remain expensive until the risks around elevated global inflation, European energy security, and China’s growth outlook have been resolved,” said analysts. Foreign investors continue to desert Indian equity markets and have pulled out over Rs 4,000 crore this month so far amid steady appreciation of the dollar and rising interest rates in the U.S.