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Rupee falls to record low of 81.09 in early trade

This is the first time the local unit has fallen below the 81 mark against the greenback

Rupee falls to record low of 81.09 in early trade
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The Indian rupee recorded yet another record low on Friday, as it touched the 81 mark against US dollar and scaled 81.09 at open, on the back of 10-year US Treasury yields climbing to fresh multi-year highs and dollar demand from importers.

This is the first time the local unit has fallen below the 81 mark against the greenback.

According to sources, the rupee depreciated 44 paise in early trade weighed down by the strong American currency and risk-off sentiment among investors.

Forex traders said escalation of geopolitical risk in Ukraine and rate hikes by the US Fed and Bank of England in a bid to contain inflation sapped risk appetite.

Further, the strength of the American currency in the overseas market, a negative trend in domestic equities, and risk-off moods amid escalation of geopolitical risk in Ukraine weighed on the local unit.

At the interbank foreign exchange, the rupee opened at 81.08 against the greenback, then fell further to 81.23, registering a fall of 44 paise over its previous closing.

On Thursday, the local unit had suffered its biggest single session percentage decline since February, due to a very hawkish US Federal Reserve rate outlook, traders said.

In the last hour of trade on Thursday, the local unit had accelerated its decline and closed at the day's low.

The rupee plunged by 83 paise its biggest single-day loss in nearly seven months to close at an all-time low of 80.79 against the US dollar.

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