The rupee on Monday closed 26 paise lower at 76.68 (provisional) against the US dollar, tracking a strong greenback overseas and a weak trend in domestic equity markets.
At the interbank forex market, the rupee opened at 76.58 against the US currency, and finally closed at 76.68, down 26 paise over its previous close.
During the trading session, the rupee was seen at a high of 76.55 and a low of 76.77.
On Friday, the rupee had fallen by 25 paise to close at 76.42.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.34% higher at 101.56.
Global oil benchmark Brent crude futures fell 4.38% to $101.98 a barrel.
The 30-share BSE Sensex closed 617.26 points or 1.08% lower at 56,579.89, while the broader NSE Nifty fell 218 points or 1.27% to end at 16,953.95.
The Indian rupee fell on Monday amid risk-off sentiments in global markets. There have been rising expectations that the US Federal Reserve may hike interest rates by 50 bps at the upcoming FOMC meeting next week, as indicated by Fed Chair Jerome last week. Powell’s speech is indicated.
Praveen Singh, AVP, Sharekhan, Fundamental Currency and Commodity Analyst, BNP Paribas, said, “Another aggressive rate hike is expected in the coming months as well.
Significant foreign fund outflows also affected the domestic currency, while a sharp fall in crude oil prices capped the downside for the rupee.
“We expect the rupee to remain under pressure on rising tensions between Russia and Ukraine and worsening global risk sentiments between the US Federal Reserve. Concerns over the resurgence of COVID-19 may weigh on the rupee. Rupee Limits ₹ 76 May trade at -77.20 in the next few sessions,” Mr. Singh said.
Foreign institutional investors remained net sellers in the capital markets on Friday as they sold shares worth ₹2,461.72 crore, according to stock exchange data.