BackRupee falls to 74.87 per dollar in early trade
Domestic equities also witnessed a sell-off on Monday as India's daily covid infections hit a new high.
PremiumThe rupee opened lower at 74.77 against the US dollar on Monday as compared to Friday's close of 74.35 against the dollar. The domestic currency continued the downward trend as it fell 52 paise to trade around 74.87 against US dollar in the early session as rising Covid cases dampened sentiment.
“The rising cases of COVID have soured sentiments in Rupee. The result of which has been a broad-based depreciation in the Indian Rupee. Inspite of a weak US Dollar globally, Rupee is under pressure. RBI is expected to be active and may intervene aggressively to curb volatility,'' said Anindya Banerjee, DVP, Currency Derivatives at Kotak Securities. Over the near term, he expects rupee to trade in the range of 74 and 75.50.
Benchmark index Sensex fell over 1,400 points on Monday while Nifty was down 2.7% and traded near 14,200 as daily covid infections hit fresh record highs. The country reported its highest-ever single-day spike of COVID-19 cases with over 2.73 lakh new cases and more than 1,600 deaths in the last 24 hours.
The dollar index was near a one-month low against its rivals after the US Federal Reserve said that any spike in inflation was likely to be temporary. Meanwhile, crude prices fell amid mounting concerns that surging caseloads of coronavirus infections in India and other countries will lead to stronger measures and hit economic activity, along with demand for commodities such as crude.
(With inputs from agencies)
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