Rupee slumps 44 paise to close at 75.77 against US dollar

The rupee depreciated by 44 paise to close at 75.77 (provisional) against the US currency on Wednesday as riskier assets took a hit amid deepening geopolitical tensions.

Forex traders said sustained foreign fund outflows, a lacklustre trend in domestic equities and elevated crude oil prices weighed on investor sentiment.

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At the interbank foreign exchange market, the rupee opened at 75.78 against the American dollar but later dropped to a low of 75.86.

The local unit finally finished at 75.77, down 44 paise from its previous close. On Monday, the rupee had settled at 75.33 against the US dollar.

The forex market was closed on Tuesday on account of Mahashivratri.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.20 per cent higher at 97.60.

Global oil benchmark Brent crude futures surged 5.71 per cent to USD 110.96 per barrel.

On the domestic equity market front, the 30-share Sensex ended 778.38 points or 1.38 per cent lower at 55,468.90, while the broader NSE Nifty shed 187.95 points or 1.12 per cent at 16,605.95.

Foreign institutional investors remained net sellers in the capital market on Monday as they offloaded shares worth Rs 3,948.47 crore, as per stock exchange data.