Rupee slumps 37 paise to close at 15-month low of 75.36 against US dollar

Representative image

Representative image

The rupee tumbled by 37 paise close at a 15-month low of 75.36 against the US dollar on Monday as rising crude oil prices and a stronger American currency in the overseas market weighed on investor sentiment.

The Indian currency for the first time this year settled below the 75 level.

The unit had closed at 74.99 on Friday.

At the interbank foreign exchange market, the local currency opened lower at 75.11 and witnessed an intra-day high of 75.06 and a low of 75.39 against the US dollar in day trade.

The local unit finally settled down by 37 paise at 75.36 a dollar, a level not seen since July 14, 2020, even as the domestic equity market touched record levels.

Brent crude futures, the global oil benchmark, advanced 2.08 per cent to USD 84.10 per barrel as oil producers restrained supplies and leading energy consumers India and China grappled with energy crisis.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.23 per cent higher at 94.28.

“The Indian rupee continued bearish momentum on the back of a stronger dollar, following higher US Treasuries, and a surge in crude oil prices,” said Dilip Parmar, Research Analyst, HDFC Securities.

Parmar further said that even after a better risk-on sentiments market with domestic benchmark index at all-time high, rupee is driven by the rising dollar and crude oil prices.

The absence of central bank intervention is also weighing on the rupee.

“Spot USDINR is now having resistance at 75.65, the high of April 21 and support shifted to 75 level,” he noted.

On the domestic equity market front, the BSE Sensex ended 76.72 points or 0.13 per cent higher at 60,135.78, while the broader NSE Nifty advanced 50.75 points or 0.28 per cent to 17,945.95.

Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 64.01 crore, as per exchange data.