Rupee skids 21 paise to end at 73.35 against US dollar
Indian rupee was the biggest loser among Asian peers on rise in COVID-19 cases, weaker equities and stronger dollar index. However, the expectation for foreign fund inflows in coming days could restrict the fall in rupee, said Devarsh Vakil, Deputy Head Retail Research, HDFC Securities.
The rupee slid 21 paise to settle at 73.35 against the US dollar on Monday, tracking subdued equities and stronger greenback against its key rival currencies.
At the interbank forex market, the Indian unit opened at 73.17 and lost further ground as the trade progressed.
During the session, the local unit witnessed an intra-day high of 73.03 and a low of 73.44 against the greenback. It finally closed at 73.35, down 21 paise over its previous close.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.15 per cent to 92.85.
On the domestic equity market front, the BSE Sensex settled 60.05 points or 0.16 per cent higher at 38,417.23; while the NSE Nifty advanced 21.20 points or 0.19 per cent to close at 11,355.05.
Foreign institutional investors were net sellers in the capital market as they sold shares worth Rs 6.93 crore on Monday, according to exchange data.
Brent crude futures, the global oil benchmark, fell 1.01 per cent to USD 42.23 per barrel.
"Indian rupee was the biggest loser among Asian peers on rise in COVID-19 cases, weaker equities and stronger dollar index. However, the expectation for foreign fund inflows in coming days could restrict the fall in rupee," said Devarsh Vakil, Deputy Head Retail Research, HDFC Securities.
"With US markets closed for Labour Day, overseas forex market liquidity likely to remain subdued? The main Euro zone focus this week is the ECB policy decision due to be announced on Thursday. No policy change is expected but the ECB's new economic forecasts and communication will be closely followed, he said.
Meanwhile, India's COVID-19 tally of cases went past 42 lakh with a record 90,802 people being infected in a day, according to the Union Health Ministry data.
The death toll climbed to 71,642, the data showed.
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