The rupee plunged 58 paise to close at an all-time low of 81.67 (provisional) against the US dollar on September 26, 2022 as the strengthening of the American currency overseas and risk-averse sentiment among investors weighed on the local unit.
Moreover, escalation of geopolitical risks due to conflict in Ukraine, a negative trend in domestic equities and significant foreign fund outflows sapped investor appetite, forex traders said.
At the interbank foreign exchange market, the local currency opened at 81.47, then fell further to close at an all-time low of 81.67 against the American currency, registering a decline of 58 paise over its previous close.
On Friday, the rupee slumped 30 paise to close at 81.09, its previous record low.
This is the fourth consecutive session of loss for the domestic unit, during which it has lost 193 paise against the American currency.
"Another day of large gains for the dollar versus the rupee as it fell for the fourth day in a trot amid risk-averse sentiments and unprecedented strength in the greenback following Fed tightening and recession worries," said Dilip Parmar, Research Analyst, HDFC Securities.
Spot USD-INR may head towards 82 as strength in the dollar index continues with surging bond yields, Parmar said, adding that in the near-term, spot USD-INR is having resistance at around 82 and support at 81.05.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.46% to 113.71.
According to experts, focus will now shift to RBI's meeting this week, with its decision due on Friday. The 38th meeting of the Monetary Policy Committee, constituted under the Reserve Bank of India Act, will be held during September 28 - 30.
Global oil benchmark Brent crude futures fell 0.70% to $85.55 per barrel.
On the domestic equity market front, the 30-share BSE Sensex dropped 953.70 points or 1.64% to end at 57,145.22, while the broader NSE Nifty fell 311.05 points or 1.8% to 17,016.30.
Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 2,899.68 crore, as per exchange data.
Meanwhile, the country's forex reserves declined $5.219 billion to $545.652 billion for the week ended September 16.
Sensex, Nifty tumble nearly 2%
Benchmark indices fell sharply, with the Sensex and Nifty tumbling nearly 2 per cent each amid weak global market trends and foreign fund outflows.
Falling for the fourth straight day, the 30-share BSE Sensex tanked 953.70 points or 1.64% to settle at 57,145.22. During the day, it plummeted 1,060.68 points or 1.82% to 57,038.24.
The NSE Nifty fell 311.05 points or 1.80% to end at 17,016.30.
Among the 30-share Sensex pack, Maruti, Tata Steel, ITC, Bajaj Finance, Axis Bank, NTPC, Mahindra & Mahindra and IndusInd Bank were the major laggards.
HCL Technologies, Infosys, Asian Paints, TCS, UltraTech Cement, Wipro and Nestle were the gainers.
Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong ended sharply lower.
European bourses were trading in the red in mid-session deals. The US markets ended in the negative territory on Friday.
Meanwhile, the international oil benchmark Brent crude slipped 0.75% to $85.50 per barrel.
Foreign institutional investors offloaded shares worth a net ₹2,899.68 crore on Friday, according to data available with BSE.
