Rupee touches fresh record low against US dollar, closes at 78.04

The Indian currency rupee breached the Rs 78 mark against the dollar for the first time ever on Monday, hitting a new lifetime low against the US dollar.

The rupee closed Monday’s trade at Rs 78.04 per US dollar, after depreciation as low as Rs 78.29 in intra-day deal.

“There is no fresh trigger to predict if the rupee will be 79 or 80 unless and until there is a conflict between US and China with regards to Taiwan, other than that there shouldn’t be any correction towards 77 or 77.50 in the spot,” said Emkay Global Financial Services in a note.

The rupee might see more weakness ahead of the US monetary policy review meeting starting later this week, where the US Fed is expected to hike rates and showcase a more aggressive action, said Jigar Trivedi, Research Analyst, Commodities & Currencies Fundamental, Anand Rathi Shares & Stock Brokers.

However, runaway depreciation might not happen amid the central bank’s intervention, Trivedi said.