INR Vs USD (Rupee Vs Dollar) Currency Exchange Rate Rupee Hits Lifetime Low Of 74.27 10 Points

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INR Vs USD: The rupee breached its previous all-time low of 74.23 Tuesday's session.

The rupee reversed all of its gains against the US dollar to hit a lifetime low of 74.27 in afternoon trade on Tuesday. A surge in crude oil prices and strength in the American currency overseas pulled the rupee lower. The rupee had started Tuesday's session on a higher note by opening at 73.93 against the dollar, and then advancing to 73.88 on fresh selling by exporters. However, it couldn't sustain those gains and gave up all of those gains in the second half of the day.

Here are 10 things to know:

1. The rupee touched a fresh all-time low of 74.27 during Tuesday's session, breaching an all-time low of 74.23 registered on October 5. 
2. Investors remained concerned over sustained foreign capital outflows and the rise in crude oil price to trade above $84 a barrel levels, not far from a four-year high of $86.74 registered last week.
3. Traders said there was some importer demand seen on Tuesday, but intermittent dollar selling by the central bank is likely to prevent a steep fall in the unit.
4. Sentiment in the forex market has been weaker after the Reserve Bank of India's surprise move on Friday to keep key interest rates on hold, against expectation of a 25-basis point hike by analysts. The central bank kept the repo rate - the rate at which it lends short-term funds to commercial banks - unchanged at 6.5 per cent.
5. RBI Governor Urjit Patel had said that the fall in the rupee is moderate in comparison to emerging market peers, and the central bank has been trying to ensure liquidity in the forex market.
6. The International Monetary Fund downgraded its global growth forecast for the first time since 2016. The IMF cut its growth projection for India by 0.1 per cent to 7.4 per cent for next year citing external factors citing external factors.
7. Analysts expected some demand for the greenback a day after a dollar settlement holiday.
8. On Monday, the rupee had plunged by 30 paise to close at a record 74.06 against the greenback. At that level, it was down nearly 16 per cent against the dollar so far this year.
9. Meanwhile, foreign institutional investors (FIIs) sold shares net worth a net of Rs 1,805 crore on Monday, provisional data showed.
10. The domestic equity markets turned negative amid volatility in late afternoon trade. At 3:11 pm, the S&P BSE Sensex traded at 34,305.72, down 168.66 points or 0.5 per cent, and the Nifty50 index of the National Stock Exchange (NSE) at 10,297.40 with a loss of 50.65 points. 

(With inputs from agencies)

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