Rupee plummets 60 paise to close at all-time low of 77.50/USD

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Photo source: PTI

The dollar index, which measures the strength of the greenback against a basket of six currencies, is trading at 104, up 0.33 percent, tracking rising U.S. yields amid fears of higher interest rates.

The rupee extended its losses and fell 60 paise against the US dollar on Monday to a record low of 77.50 (temporary), under pressure from the strength of the American currency abroad and the relentless expulsion of foreign funds.

Forex traders say risk appetite has weakened amid growing concerns about inflation, which could lead to a more aggressive rate hike by global central banks.

In the interbank foreign exchange market, the rupee opened lower at 77.17 against the greenback and finally settled at 77.50 for the day, down 60 paise from the previous close.

During the trading session, the rupee touched its all-time low of 77.52.

On Friday, the rupee fell 55 paise to close at 76.90.

In the last two trading sessions, the rupee lost 115 paise against the greenback.

“The Indian rupee has hit a spot record, tracking weakness among Asian peers in a strong dollar index and increased Treasury yields in the US. High rates to keep inflation under control, “said Royce Verghese Joseph, a research analyst at Currency and Energy, Anand Rathi Shares and Stock Brokers.

Joseph added: “Improved crude prices and rising domestic inflation, above the RBI’s upper band, could lead to more FII sales from domestic securities. Meanwhile, the RBI’s off-cycle meeting on May 4 did little to strengthen the rupee.” We can see the rupee’s spot weakening towards the 77.8 level. “

The dollar index, which measures the strength of the greenback against a basket of six currencies, is trading at 104, up 0.33 percent, tracking rising U.S. yields amid fears of higher interest rates.

Global oil benchmark Brent crude futures fell 1.68 percent to USD 110.50 a barrel.

The 30-share BSE Sensex was down 364.91 points, or 0.67 per cent, at 54,470.67, while the broader NSE Nifty was down 109.40 points, or 0.67 per cent, at 16,301.85.

Foreign institutional investors remained net sellers in the stock market on Friday as they offloaded shares worth Rs 5,517.08 crore, according to the stock exchange.

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