Forex

Rupee slumps 76 paise, settles below 74/USD

PTI Mumbai | Updated on June 17, 2021

The dollar index rose 0.60 per cent to 91.67

The Indian rupee continued its downward journey on Thursday, sliding another 76 paise to close below the 74 per US dollar level, tracking a strong greenback overseas after the US Federal Reserve surprised the market by signalling rate hike sooner than expected.

At the interbank forex market, the domestic unit opened weak at 73.65 against the American currency, then lost further ground and finally closed at 74.08, showing a fall of 76 paise over its previous close.

On Wednesday, the rupee had settled at 73.32.

The local unit witnessed an intra-day high of 73.57 and a low of 74.08 against the greenback.

The domestic currency has lost 128 paise in the eight trading sessions to Thursday.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.60 per cent to 91.67.

"Indian Rupee depreciated amid strong dollar. Further, risk aversion in the global markets and disappointing macroeconomic data added downside pressure," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.

"Dollar gained strength as US Federal Reserve surprised market by signalling rate hike sooner than expected. Their median projection showed central bank lifting their benchmark rate to 0.6 per cent from near zero by the end of 2023," Mukadam said.

 

Published on June 17, 2021

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