The rupee fell 28 paise Monday, reaching its weakest level in eight weeks at 75.40 against the US dollar, in line with the massive erosion in domestic stocks amid concerns over the new Omicron variant.
In addition, rising crude oil prices in international markets and a rising dollar abroad also pushed the rupee back.In the interbank currency market, the local currency opened weakly at 75.22 and witnessed an intra-day high of 75.19 and a low of 75.45 against the US dollar in day trading.
The local unit eventually settled at $75.40 per dollar, 28 paise less than its previous closing rate — the lowest closing level for the rupee since Oct. 12.
“The rupee has depreciated for the third day in a row following a plunge in domestic equities and strong port demand for the dollar. Investors have reduced risk exposure ahead of RBI policy decisions scheduled for December 8.” Dilip Parmar-Research Analyst, HDFC Securities, said.
Given the way the dollar/rupee has traded, it could break the multiple highs of 75.68 with higher volatility, he added.
In the domestic stock market, the BSE Sensex finished 949.32 points or 1.65 percent lower at 56,747.14, while the broader NSE Nifty fell 284.45 points or 1.65 percent to 16,912.25.
Futures on Brent oil, the global oil benchmark, were up 2.43 percent to $71.58 a barrel.The dollar index, which measures the dollar’s strength against a basket of six currencies, was trading 0.13% higher at 96.23.
Foreign institutional investors were net sellers in the capital market on Friday as they sold shares worth Rs 3,356.17 crore, according to exchange data.