Mumbai: The rupee plunged 43 paise to close at a near 2-week low of 72.91 against the American currency on Monday accompanied by a strengthening dollar and stable capital outflows.
According to the analyst, the US Treasury yields rose above 3% mark, which boosted the appeal for the dollar.
The greenback climbed to nearly 1-month high against global currencies.
Liquidity of Rs.36,000 crore into the system would be injected through the purchase of government bonds in October month to meet the festival season demand for funds, announced the RBI (Reserve Bank of India).
A senior Treasury official said, “Rupee continues to weaken as crude oil prices remain high. Unless we have comfort from crude oil prices, we are expected to see weakness in rupee. It is going to float in the 70-72 range.”
For the currency markets, the main concern is for the surging crude oil prices.
The head PCG and capital markets strategy of HDFC Securities, V K Sharma said, “Amid the emerging market currencies, the rupee was the worst performer with a loss of 42 paise to 72.91 against the Dollar today.”
“Forex traders are awaiting some concrete steps from RBI MPC meeting scheduled on October 5,” added Sharma.
In see-saw trade on Monday, the S&P BSE Sensex mounted 299 points or 0.83% to settle at 36,526.14, whereas the Nifty50 rose 77.85 points or 0.71% to reclaim the 11,000 mark.
