In early trade on Monday, India’s official currency fell 51 paise to Rs 77.41 against the US dollar, an all-time low.Against the American dollar, the rupee depreciated 52 paise to quote at 77.42 at the interbank foreign exchange.Earlier this month, when the Rupee was 76.98, it broke the previous record low.
On Friday, the Rupee had slumped 55 paise to close at 76.90 against the US dollar.
The reason abaft the drop in value of the Rupee could be incriminated on the ordinant dictation for riskier assets and additionally because the peregrine investors perpetuate to dump the domestic stocks.
Investors are withal worried that the broader Asian stocks could decline further due to the tightening COVID lockdown in Shanghai, which could hit ecumenical economic magnification.
According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the Indian Rupee opened weaker against the dollar on Monday due to weakness in global stocks weighed on sentiment and concerns over the economy.
Forex traders said risk appetite has weakened amid mounting concerns about inflation that may trigger more aggressive rate hikes by the global central banks.
Despite rising US yields and worries about higher interest rates, the dollar index, which measures the greenback’s strength against other currencies, rose 0.35 per cent to 104.02.
According to data from the NSE, the 30-share Sensex fell 737 points, or 1.34 percent, to 54,098.58 points, while the NSE Nifty fell 220.25 points, or 1.34 percent, to 16,191.00 points.
Compared to last week, Brent crude oil futures rose 0.14 per cent to USD 112.55 per barrel.
As per stock exchange data, foreign institutional investors sold shares worth Rs 5,517.08 crore in the capital market on Friday.