Rupee hits eight-week low and falls against dollar
The rupee on Monday fell 28 paise to its weakest level in eight weeks at 75.40, in line with a sharp fall in domestic stocks amid concerns over the new Omicron variant.Besides, rising crude oil prices in international markets and rising greenback overseas also pulled the rupee back.
At the interbank forex market, the local currency opened weak at 75.22 and was seen trading with a high of 75.19 and a low of 75.45 against the US Dollar in the day’s trade.
The local unit finally settled at $75.40 a dollar, down 28 paise over its previous close – the lowest closing level for the rupee since October 12.
“The rupee depreciated for the third day in a row following a fall in domestic equities and strong dollar demand. Investors have hedged risk appetite ahead of RBI’s policy decisions,” said Dilip Parmar, Research Analyst, HDFC Securities. said.
He added that the way Dollar/Rupee is trading, it may break several highs of 75.68 with higher volatility.
On the domestic equity market front, the BSE Sensex ended 949.32 points or 1.65 per cent lower at 56,747.14, while the broader NSE Nifty fell 284.45 points or 1.65 per cent to 16,912.25.Global oil benchmark Brent crude futures rose 2.43 per cent to $71.58 per barrel.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13 per cent higher at 96.23.
Foreign institutional investors were net sellers in the capital markets on Friday as they sold shares worth Rs 3,356.17 crore, according to exchange data.
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