The rupee fell 60 paise to close at an all-time low of $77.50

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In the last two trading sessions, the rupee has lost 115 paise against the greenback

In the last two trading sessions, the rupee has lost 115 paise against the greenback

The rupee extended losses, falling 60 paise to close at a record low of 77.50 (prelim) against the US dollar on Monday (preliminary), pressured by US currency strength overseas and unabated outflows of foreign funds .

Forex traders said risk appetite has eased amid rising inflation concerns that could prompt more aggressive rate hikes by global central banks.

In the interbank FX market, the rupee opened lower at 77.17 against the greenback and ended up trading at 77.50 for the day, down 60 paise from its previous close.

During the trading session, the rupee hit a lifetime low of 77.52.

On Friday the rupee fell 55 paise to close at 76.90.

In the last two trading sessions, the rupee has lost 115 paise against the greenback.

“Indian rupee spot plunged to record lows, following weakness from Asian peers amid stronger dollar index and rising US Treasury rates, higher rate hike to tame future inflation,” said Royce Vargheese Joseph – Research Analyst – Currency and Energy, Anand Rathi Shares and Stock Brokers.

Joseph went on to say, “Elevated crude oil prices and rising domestic inflation well above the RBI’s upper band could lead to further FII selling of domestic securities. Meanwhile, the RBI off-cycle meeting on May 4 did little to strengthen the rupee. Going forward, we could see the rupee spot weakening towards 77.8.” The dollar index, which measures the greenback’s strength against a basket of six currencies, traded 0.33% higher to 104, tracking rising US yields amid fears of higher interest rates.

Global oil benchmark Brent crude futures fell 1.68% to $110.50 a barrel.

The 30-stock BSE Sensex closed 364.91 points, or 0.67%, lower at 54,470.67, while the broader NSE Nifty fell 109.40 points, or 0.67%, to 16,301.85.

Overseas institutional investors remained net sellers in the capital market on Friday, as they sold ₹5,517.08 crore of shares, according to stock market data.

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