Forex dealers say a strong greenback against major rivals and frequent foreign fund outflows also put pressure on the Indian currency.
Forex dealers say a strong greenback against major rivals and frequent foreign fund outflows also put pressure on the Indian currency.
The rupee on Monday fell 49 paise to close at 81.89 (provisional) against the US dollar as heavy selling pressure in domestic equities and rise in crude oil prices weighed on the local unit.
Besides, a strong greenback against key rivals and frequent foreign fund outflow put pressure on the domestic currency, forex dealers said.
In the interbank forex market, the local currency opened weak at 81.65, falling as much as 81.98 against the US currency.
It finally closed at 81.89, 49 paise lower than its previous close.
In the previous session, the rupee had closed at 81.40 against the greenback.
On the domestic equity market front, the 30-share BSE Sensex ended 638.11 points or 1.11% lower at 56,788.81, while the broader NSE Nifty fell 207 points or 1.21% to 16,887.35.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.30% to 112.45.
Global oil benchmark Brent crude futures rose 4.12% to $88.65 per barrel.
Foreign institutional investors were net sellers in the capital markets on Friday as they sold shares worth Rs 1,565.31 crore, according to exchange data.
After pumping in funds over the past two months, foreign investors again became sellers in September and pulled out ₹7,600 crore from Indian equity markets amid a harsh US Fed’s stance and sharp depreciation in the rupee.