India’s official currency Rupee has dropped 51 paise to an all-time low of Rs 77.41 against the US dollar in early trade on Monday.
At the interbank foreign exchange, the Rupee opened at 77.17 against the American dollar, then lost ground to quote at 77.42, registering a fall of 52 paise from the last close. The Rupee has slipped past the previous record low of 76.98 in March.
On Friday, the Rupee had slumped 55 paise to close at 76.90 against the US dollar.
The reason behind the drop in value of the Rupee could be blamed on the demand for riskier assets and also because the foreign investors continue to dump the domestic stocks.
Investors are also worried that the broader Asian stocks could decline further due to the tightening COVID lockdown in Shanghai, which could hit global economic growth.
The Indian Rupee opened weaker on Monday against the dollar as weakness in global equities on concerns over the economic outlook and rising bond yields weighed on sentiments, said Sriram Iyer, Senior Research Analyst at Reliance Securities.
Forex traders said risk appetite has weakened amid mounting concerns about inflation that may trigger more aggressive rate hikes by the global central banks.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.35 per cent higher at 104.02, tracking rising US yields and fears about higher interest rates.
Moreover, Asian and emerging market peers started weak this Monday morning and will weigh on sentiments.
On the domestic equity market front, the 30-share Sensex was trading 737 points or 1.34 per cent lower at 54,098.58 points, while the broader NSE Nifty declined 220.25 points or 1.34 per cent to 16,191.00 points.
Global oil benchmark Brent crude futures rose 0.14 per cent to USD 112.55 per barrel.
Foreign institutional investors were net sellers in the capital market on Friday, as they offloaded shares worth Rs 5,517.08 crore, as per stock exchange data.
(With input from agencies)