New Delhi: As the market opened on Monday, the Indian currency slipped further touching Rs 76.62 against the dollar, extending its weakness from Friday, when it did a U-turn to pare gains from earlier in the session to close over 0.4 per cent weaker At 76.61.
The fall in the rupee is driven more by the allure of the dollar, after US inflation spiked to its fastest in 40 years. The dollar climbed to its highest since January 2017 against the yen, extending gains from the previous week.
The US currency also gained on the Swiss franc in early trade, hitting 0.9363, its highest since late November. The rupee weakened in afternoon trade on Thursday, falling 0.50% to 76.65 against the U.S. dollar. Indian equity market also turned volatile with Sensex and Nifty giving up intraday gains.
The rupee has seen a decline of 17.5 per cent in the last five years – it was 65.47 in 2017 and it was slipped to 76.96 on March 7, 2022. The recent dip is attributed to Global oil prices that soared past $120 per barrel amid the US and European nations mulling a ban on Russian energy imports. The ongoing depreciation of the rupee is also set to make borrowings in foreign currency expensive for corporate India.