Forex traders said risk appetite has eased amid rising inflation concerns that could prompt more aggressive rate hikes by global central banks.
Forex traders said risk appetite has eased amid rising inflation concerns that could prompt more aggressive rate hikes by global central banks.
The rupee extended losses to hit an all-time low of 77.42 against the US dollar in early trade Monday, weighed down by the US currency’s strength in overseas markets and unabated outflows of foreign funds.
On the interbank foreign exchange exchange, the rupee opened at 77.17 against the US dollar, then lost ground to trade at 77.42, down 52 paise from the last close.
On Friday, the rupee fell 55 paise to close at 76.90 against the US dollar.
The Indian rupee opened weaker against the dollar on Monday as weakness in global equities on worries about the economic outlook and rising bond yields weighed on sentiment, said Sriram Iyer, senior research analyst at Reliance Securities.
Forex traders said risk appetite has eased amid rising inflation concerns that could prompt more aggressive rate hikes by global central banks.
The dollar index, which measures the greenback’s strength against a basket of six currencies, traded 0.35% higher to 104.02, trailing rising US yields and fears of higher interest rates.
Additionally, Asian and emerging market peers started weak this Monday morning and will weigh on sentiment.
On the domestic stock market front, the 30-piece Sensex was down 737 points, or 1.34%, to 54,098.58 points, while the broader NSE Nifty was down 220.25 points, or 1.34%, to 16,191.00 points.
Global oil benchmark Brent crude futures were up 0.14% to $112.55 a barrel.
Overseas institutional investors were net sellers in the capital market on Friday, selling ₹5,517.08 crore of shares, according to stock market data.
