This morning, the Indian currency rupee hit another another all-time low versus the US dollar. The rupee dropped 14 paise to 77.69 US cents.
Money market investors are keeping an eye on the local stock market for signals about fund movements. The rupee was also pulled down by expectations of US monetary policy tightening, since any rate hike in advanced markets is often accompanied by money outflows from emerging markets in order to accrue higher returns.
The rupee has been under pressure since global central banks began normalizing their policies, and RBI began boosting key interest rates last week.
The rupee opened sluggish against the US dollar at 77.67, then lost more ground to quote at 77.69, a 14-paise drop from the previous finish. In early trade, the local currency hit a new intraday low of 77.71 to the dollar.
A rise in global crude oil prices also affected the currency. The rupee hit an all-time low of 77.55 against the US dollar in the previous session..
