Rupee slips by 45 paise to open at 81.56 against US dollar over geopolitical tensions

The Russian strikes on Poland have created volatility, pushing investors towards the US dollar.

FPJ Web DeskUpdated: Wednesday, November 16, 2022, 10:47 AM IST
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The Rupee opened 45 paise lower against the US dollar at 81.56, as global investors looked at buying dollars as a safe investment amidst volatility over Russian strikes on a Polish village. Last week the domestic currency had made the highest gain in four years against the dollar, after falling to record lows beyond 83. But currently it looks like the Rupee rate will stay between 80 to 83, as a new normal before falling to 84.

Apart from the negative performance, the internationalisation of the Rupee received a boost from nine Russian banks opening special vostro accounts. These are accounts which are held by banks in another country through a corresponding bank to trade in the local currency. India also keen on promoting the Rupee-Riyal trade to strengthen economic ties with Saudi Arabia.

The Rupee is also getting a digital avatar with SBI, ICICI and Yes Bank among other lenders selected by the RBI for a pilot launch.

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