Mumbai: Indian official currency Rupee reached a record low against the US dollar on Monday in early trade. The Indian currency ended close to its all-time lows of 77.05 hit in March, it weakened sharply today and was last trading at 77.42 per dollar, according to sources.
Today around 9 am, the domestic currency was trading at 77.28 per dollar. It was 0.48 percent lower than the previous close of 76.93. At the interbank foreign exchange, the rupee opened at 77.17 against the American dollar, then lost ground to quote at 77.42, registering a fall of 52 paise from the last close. The rupee opened at 77.06 and touched a low of 77.31 per dollar. The last time the rupee had come down to a low of 76.98 on March 7, 2022. The impact of the fall in global equities is also visible on the rupee amid inflation concerns.
On Friday, the rupee had slumped 55 paise to close at 76.90 against the US dollar. The Indian rupee opened weaker on Monday against the dollar as weakness in global equities on concerns over economic outlook and rising bond yields weighed on sentiments, said Sriram Iyer, Senior Research Analyst at Reliance Securities.
Forex traders said, risk appetite has weakened amid mounting concerns about inflation that may trigger more aggressive rate hikes by the global central banks. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.35 per cent higher at 104.02, tracking rising US yields and fears about higher interest rates. Moreover, Asian and emerging market peers started weak this Monday morning and will weigh on sentiments.
On the domestic equity market front, the 30-share Sensex was trading 737 points or 1.34 per cent lower at 54,098.58 points, while the broader NSE Nifty declined 220.25 points or 1.34 per cent to 16,191.00 points. Global oil benchmark Brent crude futures rose 0.14 per cent to USD 112.55 per barrel.
Foreign institutional investors were net sellers in the capital market on Friday, as they offloaded shares worth Rs 5,517.08 crore, as per stock exchange data.