INR Hits Lifetime Low Against USD: Key Triggers and Crucial Levels

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By Malvika Gurung

Investing.com — The continued to depreciate against the US dollar, as the domestic currency hit an all-time low of 83.15 against the greenback in early trade on Tuesday.

The domestic unit opened marginally lower at 83.12 against the dollar in the ongoing session after closing at 83.13 a dollar on Wednesday. 

The lifetime low of 83.15/$1 recorded on September 7, 2023, comes amid a strong US dollar, which hovered around its highest levels since mid-March against major currencies and exerted pressure on Asian peers.

At 9:40 am, the traded flat at 104.81 levels, while the traded flat too.

In a note provided to Investing.com, Kunal Sodhani, Vice President, Global Trading Center, Shinhan Bank said, “Strong US data underpins soft landing concerns, allowing Fed hawks to defend ‘higher for longer’ bias for rates. China woes and Fed Beige Book concerns too keep DXY buyers hopeful via firmer yields. prices, Chinese and DXY seem against rupee”.

For the USD/INR pair, the forex expert marks 82.9 to act as a support and 83.3 as the first resistance. 

A rising US Treasury yields exerted pressure on Asian currencies. The traded near 4.3% levels, which is around the year-to-date highs for the index.

A stronger-than-expected growth data from the services sector in August raised concerns about the prospects of the Fed’s rate hike going forward, stoking fears that the central bank could keep interest rates elevated for longer, which led to Treasury yields rising.

According to experts, foreign investors offloading Indian equities over the past few sessions as well as a subdued market mood added pressure on the domestic currency.

The jumped to 54.5 in August compared to Investing.com’s forecast of 52.5, while the component, which is a gauge of inflation, also increased to 58.9 last month from 56.8 in July. 

Further, oil prices stuck to 10-month peaks as signs of another draw in U.S. inventories added to expectations that global crude supplies will tighten further this year, an Investing.com report noted.

traded at $90.32/barrel and at $87.2 a barrel while writing. 

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