Dollar vs Rupee falls to a lifetime low, breaches 81 mark versus USD RS News

Dollar vs Rupee: The Indian rupee broke 81 points against the US dollar on Friday to hit an all-time low as the greenback strengthened on the back of a hike in the Federal Reserve repo rate. The local currency was trading at 80.998 at 4 PM IST. In the afternoon, it was trading at 80.856 versus the dollar. Globally, the dollar has rallied in the past few days as the US Fed signals a tighter-than-expected cycle.

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  • What did Vinod Nair say?
  • Government bonds also outperformed 10-year benchmark bonds

What did Vinod Nair say?

On Friday morning at 09:25 the local currency was trading at 81.13. On Thursday, the rupee had closed 1.1 per cent lower against the dollar at a record low of $80.87 against the dollar. Vinod Nair, Head of Research, Geojit Financial Services, said, “A rise in US 10-year bond yields and a strong dollar index influenced FIIs (foreign institutional investors) to flee emerging markets. Declining liquidity in the banking system, a weak currency and a current premium valuation have turned the market outlook bearish for the near term.”

With reference to the Indian scenario, Nair also said, “Global growth engines are in a slowdown with aggressive monetary policy action by central banks, while India is currently in a better position with credit growth and tax hikes. The current volatility may persist for some time. Investors are advised to wait and see till the dust settles.”

Government bonds also outperformed 10-year benchmark bonds

On Wednesday, government bonds also started incurring sharp losses with the yield on the 10-year benchmark bond rising 7 basis points to 7.38 per cent in the previous trade. Bond prices and yields move in the opposite direction. Domestic stock markets registered a fall in Friday’s trade. During Friday’s session, the major index Nifty 50 fell over 300 points to 17,300 and the S&P BSE Sensex fell over 1,100 points.

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