Mumbai, April 25 (PTI): The rupee declined by 22 paise to close at 76.64 against the US dollar on Monday, tracking a strong greenback overseas and a lacklustre trend in the domestic equity markets.
Heavy forex outflows amid growing worries over global growth weighed on the local units, traders said.
At the interbank foreign exchange market, the rupee opened lower at 76.58 against the American currency, and finally settled for the day at 76.64.
During the trading session, the rupee witnessed an intra-day high of 76.55 and a low of 76.77. On Friday, the rupee had closed 25 paise lower at 76.42.
The US dollar surged to a two-year high levels on strong risk-averse sentiment in global markets. Chinese yuan dropped for a third day in a row on fears of slowdoan in China due to resurging Covid cases and subsequent lockdowns in main cities.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.34 per cent higher at 101.56.
Global oil benchmark Brent crude futures fell 4.38 per cent to USD 101.98 per barrel.
The 30-share BSE Sensex ended 617.26 points or 1.08 per cent lower at 56,579.89, while the broader NSE Nifty fell 218 points or 1.27 per cent to 16,953.95.
"The Indian rupee declined on Monday amid risk-off sentiments in global markets. There are increased expectations that US Federal Reserve may hike interest rates by 50 bps in upcoming FOMC meet next week as indicated by Fed Chair Jerome Powell's speech last week.
"There are expectations of further aggressive rate hikes in the coming months, too," said Praveen Singh, AVP- Fundamental currencies and Commodities analyst Sharekhan by BNP Paribas.
Significant foreign fund outflows have also dented the domestic currency, while the sharp decline in crude oil prices have cushioned the downside for the rupee.
"We expect Rupee to remain under pressure on deteriorating global risk sentiments due to escalating tensions between Russia and Ukraine, and hawkish US Federal Reserve. Concerns over resurgence of COVID-19 may also weigh on Rupee. Rupee may trade in the range of Rs 76-77.20 in the next couple of sessions," Singh added.
Foreign institutional investors remained net sellers in the capital market on Friday as they offloaded shares worth Rs 3,302.85 crore, according to stock exchange data.
Disclaimer: This story is auto-generated from news agency feeds and has not been edited by The Morung Express.
Source: PTI
