The value of rupee, on Wednesday, fell by over 19 paise to close at all-time low of 79.04 against per US dollar.
“As equity markets decided that a recession isn’t good for stocks, after all, the Dollar index managed to unwind almost all of last week’s retreat in just one session. The dollar-yen exchange rate was back above 136 this morning, and the Indian rupee took a pasting to a new all-time low,” Jeffrey Halley, Senior Market Analyst, Asia Pacific, OANDA was quoted by The Economic Times.
“Notably, US yields barely moved overnight so yen and rupee have no excuse on that front. It seems that markets are far more comfortable rushing into the apparent safety of the dollar at the first sign of trouble,” Halley said.
A rise in global crude prices also weighed on the domestic currency.
The dollar is up nearly 6% so far this year against the Indian rupee.
International crude oil prices have been above the psychologically crucial $100 per barrel mark since February.
Inflation is at a multi-decadal high in advanced countries.
Inflation in India, too, is above the permissible tolerance band at the moment.