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.