Rupee hits new all-time low of 79.43 against US dollar

In response to a decline in the stock markets, the Indian rupee plunged to a new record low against the US dollar on Monday of 79.43.

The partly convertible rupee began trading on Monday at 79.30 versus the US dollar in the interbank foreign exchange market, down from its Friday close of 79.25. The rupee plummeted in late morning trade to a low of 79.43. The exchange rate of the Indian rupee to the US dollar has now reached an all-time low. The previous record low for the rupee versus the US dollar was 79.38, which was reached last week.

Due to selling pressure in the stock markets, the rupee has fallen. Monday saw significant selling pressure in the IT and telecom sectors drive down India’s two main stock market indexes, the Sensex and Nifty.

Tata Consultancy Services (TCS) fell by almost 5% as a result of the weak Q1 earnings. The stock was down 4.39 percent, selling for Rs 3121.40.

The largest IT company in the nation, TCS, posted a net profit of Rs 9,478 crore for the first quarter of the current financial year, up from Rs 9,008 crore in the same time previous year, representing an increase of 5.21 per cent year over year. The company’s profit is far less than what the market anticipated. For the quarter that ended on June 30, the company’s sales increased 16.2% from the prior year to Rs 52,758 crore.

The value of the Indian rupee has been under pressure due to a growing trade imbalance.

India’s trade imbalance increased to $25.63 billion in June, according to information recently issued by the Ministry of Commerce & Industry. The trade imbalance for the first three months of the current fiscal year increased to $70.25 billion.

Due to heavy imports, the nation’s trade deficit has increased. India’s merchandise imports for the months of April through June 2022–23 totaled $187.02 billion, up 47.31% from $126.96 billion during the same period the previous year.

India’s exports of goods increased by 22.22 percent to $116.77 billion in the first quarter of the current fiscal year from $95.54 billion in April through June of last year.

In June 2022, India’s exports of goods increased by 16.8% to $37.9 billion, while imports jumped by 51.02% to $63.58, resulting in a trade imbalance of $25.63 billion for the month.