Rupee plummets to all-time low of 76.22 against dollar

MUMBAI: The rupee on Monday tumbled by 102 paise to settle at a lifetime low of 76.22 (provisional) against the US dollar as domestic equities came under pressure following a sharp surge in coronavirus cases in India.

Forex traders said market participants are concerned that the sharp rise in coronavirus cases, which has crossed over 400 in the country, could weigh on the economy.

The rupee which opened on a weak note at ₹75.90 at the interbank forex market, finally settled at ₹76.22 against the US dollar, registering a decline of over 102 paise over its last close.

During the day it saw a high of ₹75.86 and a low of ₹76.30.

The local unit had settled at ₹75.20 against the US dollar on Friday.

Covid-19 cases in India has increased to 415, according to the Union Health Ministry.

“The currency has been weighed down in the last few sessions also due to broad strength in the dollar against its major crosses. On the domestic front, FIIS continued to remain net sellers in the equity and debt segment and selling has been to the tune of over $11 billion,” said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.

Traders said there is a sense of anxiety among investors as they see the global as well as domestic economy plunging into a deep crisis due to the pandemic that has killed over 14,000 and sickened lakhs of people around the globe.

Moreover, the steep decline in equities and sustained foreign fund outflows dampened the sentiment, they said.