scorecardresearchIndian rupee slumps to near four-week low as euro, yuan weaken

Indian rupee slumps to near four-week low as euro, yuan weaken

Updated: 22 Aug 2022, 03:12 PM IST
TL;DR.

The rupee dropped to 79.9125 per U.S. dollar, lowest level since July 27, compared with 79.7750 in the previous session.

An collectible banknote buyer holds Indian rupee banknotes in Mumbai, India, on Wednesday, July 20, 2022. The rupee slid to all-time low of 80.06 per dollar on Tuesday, and has lost 2.4% over the past month, the third-worst performing Asian currency over the period. Photographer: Dhiraj Singh/Bloomberg

An collectible banknote buyer holds Indian rupee banknotes in Mumbai, India, on Wednesday, July 20, 2022. The rupee slid to all-time low of 80.06 per dollar on Tuesday, and has lost 2.4% over the past month, the third-worst performing Asian currency over the period. Photographer: Dhiraj Singh/Bloomberg

MUMBAI (Reuters) - The Indian rupee slipped to a four-week low against the dollar on Monday as the euro and the Chinese yuan extended losses.

The rupee dropped to 79.9125 per U.S. dollar, lowest level since July 27, compared with 79.7750 in the previous session.

**Euro falls to as low as 0.9988 to the dollar, weighed down by concern that a three-day halt to European gas supplies later this month will exacerbate an energy crisis.

**Offshore Chinese yuan slipped to a two-year of 6.8621 to the dollar after the country's central bank cut key lending rates.

**Selloff in Indian shares adds to rupee's woes. The BSE Sensex down 1.2%. U.S. equity futures slip 1.1%.

**U.S. interest rate outlook concerns sap risk appetite. Odds of 75 basis points rate hike by Federal Reserve climb to almost 50%.

** Considering the extent of bad news, it is surprising that the rupee is still holding on the stronger side of 80, a currency trader at a private bank said.

**"It is quite clear that the markets still sees 80 as a level that the RBI will want to defend."

First Published: 22 Aug 2022, 03:12 PM IST