Rupee plunges 49 paise to 81.89 against U.S. dollar as crude oil spikes

Forex dealers say a stronger greenback against key rivals and persistent foreign fund outflows also put pressure on the Indian currency

October 03, 2022 05:06 pm | Updated 05:06 pm IST - Mumbai:

 At the interbank foreign exchange market, the Indian rupee opened weak at 81.65, fell further to 81.98 against the U.S. dollar.

 At the interbank foreign exchange market, the Indian rupee opened weak at 81.65, fell further to 81.98 against the U.S. dollar. | Photo Credit: Reuters

The rupee fell by 49 paise to close at 81.89 (provisional) against the U.S. dollar on Monday as heavy selling pressure in the domestic equities and a spike in crude oil prices weighed on the local unit.

Besides, a stronger greenback against key rivals and persistent foreign fund outflows put pressure on the domestic currency, forex dealers said.

At the interbank foreign exchange market, the local currency opened weak at 81.65, fell further to 81.98 against the American currency.

It finally ended at 81.89, down 49 paise over its previous close.

In the previous session, the rupee settled at 81.40 against the greenback.

On the domestic equity market front, the 30-share BSE Sensex dropped 638.11 points or 1.11% to end 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, advanced 0.30% to 112.45.

Global oil benchmark Brent crude futures surged 4.12% to USD 88.65 per barrel.

Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth ₹1,565.31 crore, as per exchange data.

After infusing funds in the last two months, foreign investors turned sellers again in September and pulled out ₹7,600 crore from the Indian equity markets amid a hawkish stance by the U.S. Fed and sharp depreciation in the rupee.

Top News Today

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.