The rupee on Monday shed 37 paise to close at a 15-month low of 75.36 against the US dollar as rising crude oil prices and a firmer US currency in the overseas market affected investor sentiment.
For the first time this year, the Indian currency went below the level of 75. The unit closed at 74.99 on Friday.
At the interbank forex market, the local currency opened at 75.11 and saw an intra-day high of 75.06 and a low of 75.39 against the US Dollar in the day’s trade.
The local unit eventually settled lower by 37 paise at $75.36 a dollar, a trend not seen since July 14, 2020, even as the domestic equity market touched a record high.
Brent crude futures, the global oil benchmark, rose 2.08% to $84.10 a barrel, as oil producers curtailed supplies and major energy consumers India and China grappled with an energy crisis.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.23% higher at 94.28.
Dilip Parmar, Research Analyst, HDFC Securities, said: “The bearish momentum in the Indian rupee continued on the back of a strong dollar following a rally in US Treasuries and a rise in crude oil prices.”
Mr Parmar further said that the rupee is driven by rising dollar and crude oil prices, even after a better risk-on sentiment market with domestic benchmark indices. The absence of central bank intervention is also weighing on the rupee.
“Spot USDINR is now holding resistance at 75.65, April 21 high and support has shifted to 75 level,” he said.
On the domestic equity market front, the BSE Sensex closed 76.72 points or 0.13% higher at 60,135.78, while the broader NSE Nifty ended 50.75 points or 0.28% higher at 17,945.95.
Foreign institutional investors were net sellers in the capital markets on Friday as they sold shares worth 64.01 crore, according to exchange data.
.