By Malvika Gurung
Investing.com — The sank to a new lifetime low against the US dollar for the consecutive session on Monday amid sell-offs in the domestic market and weak global cues. Benchmark equity indices tanked 1.92% and crashed 1,035.3 points or 1.8%.
The domestic currency opened at a fresh low of 81.55 against the USD on Monday for the third straight session and was last seen trading at 81.259/$1. It has been spiralling down against the greenback, falling for eight days out of nine and slashing around 2.3% during this period.
The hit a fresh 20-year high on Monday, jumping to its highest since May 2002 at 114.58. At the time of writing, it was trading at 113.95, while the surged 0.81%.
The 2-year US Treasury yield jumped to its 15-year peak on Monday to 4.2%, while the Sterling collapsed to a record low in the session by 4.9% to $1.0327 on speculation that the U.K. government’s decision to implement tax cuts and investment incentives for boosting the faltering economic growth will stretch Britain’s finances.
Mohit Nigam of Hem Securities expects INR to remain under pressure as the dollar index could rise significantly following the US Fed’s commitment to hiking rates more hawkishly going ahead. He sees the rupee fall to 82-83.5 levels.
In a note provided to Investing.com, Kunal Sodhani, Vice President, Global Trading Center, Shinhan Bank said, “Economic indicators from the Eurozone and the UK showed a pronounced contraction in business activity, while fiscal measures from the UK with already high inflation remain a concern. 10Y UST was around 3.75% while traded higher at around 7.17 levels.
Crude prices have softened to around $86/bbl. Any feeds from China will be important to watch out for. For , 80.90 acts as support while 81.70 a resistance.