As per the latest report from the stocks, the Indian rupee has touched its all-time low against the US dollar. On March 7 this year, the rupee hit a low of 76.98, but this time rupee opened at 77.06 and touched a low of 77.31 a dollar. Fears over the Covid-19 lockdown in Shanghai, China, have been reflected in Asian markets.
Moreover, as the prospect of aggressive tightening by global central banks roiled markets, foreign funds withdrew $ 17.7 billion from Indian equities this year, the highest level on record. The rupee fall was also affected by the Russia-Ukraine war and fears of higher interest rates.
According to reports, the dollar scaled close to its two-decade highs, gaining for a fifth consecutive week after the Federal Reserve hiked its benchmark funds rate by 50 basis points and strong jobs data on Friday there reinforced bets on further big hikes.
Domestically, the Reserve Bank of India may also extend interest rate hikes amid worries that inflation would exceed its mandated target in the next six months, although a three-quarter point increase is unlikely in the June meeting. The 10-year bond yield rose 3 basis points to 7.484 percent. Yields have risen over 35 basis points after the RBI’s surprise rate hike last week.