The rupee on Friday slipped 1 paisa to close at its all-time low of 78.33 (provisional) against the US dollar. On a volatile trade day, the rupee started on Friday with gains but ended at its record low, marking the third day in a row of lifetime-low close. During the day, the currency witnessed an intra-day high of 78.19 and a low of 78.35 against the American currency.
At the interbank foreign exchange market, the local currency opened at 78.20 and finally settled at its all-time low of 78.33, down 1 paisa from its previous close. On Thursday and Wednesday, the rupee had settled at 78.32 against the greenback, with the dollar index, which gauges the currencies’ strength against a basket of six peers, fell 0.25 per cent to 104.17.
The BSE Sensex closed 462.26 points or 0.88 percent higher at 52,727.98 on the domestic equities market, while the larger NSE Nifty advanced 142.60 points or 0.92 percent to 15,699.25.
According to stock exchange data, foreign institutional investors continued to be net sellers in the capital market on Thursday, selling shares worth ₹ 2,319.06 crore.
Michael Patra, the deputy governor of the Reserve Bank of India, stated on Friday that the Indian currency has recently experienced “the least amount of depreciation and that the Central Bank will not permit jerky fluctuations of the rupee.” Speaking at a session on “Geo-Political Spill-overs and Indian Economy” at PHDCCI, Patra said there are indications that inflation may be peaking. “As monetary policy works through into the economy, inflation is expected to fall back into the threshold in the fourth quarter of 2022-23 and fall even further in the next year. This is only the baseline scenario,” he said, adding that because of initiatives taken so far, the inflation may fall “sooner and faster.”
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