The rupee hits an eight-week low, falling against the U.S. dollar

The exchange rate of the rupee against the US dollar plummeted by 28 paisa on Monday, reaching its lowest level in eight weeks at 75.0, which is consistent with the sharp decline in domestic stocks due to concerns about the new Omicron variant.In addition, rising crude oil prices in the international market and soaring overseas U.S. dollars have also pushed down the rupee.

In the inter-bank foreign exchange market, the local currency opened 75.22 lower, and the intraday high against the US dollar reached 75.19 and the low 75.5.

The local unit finally closed at 75.0 US dollars per US dollar, a decrease of 28 paises from the previous day’s closing price, which was the lowest closing price of the rupee since October 12.

“After the domestic stock market crash and strong safe-haven demand for the U.S. dollar, the rupee depreciated for the third consecutive day. Investors reduced their exposure before the Reserve Bank of India policy decision scheduled for December 8,” HDFC Securities Research Analyst Dilip Parmar, said it.

He added that given the USD/rupee trading method, it may break through multiple highs of 75.68 with higher volatility.

In the domestic stock market, BSE Sensex closed down 99.32 points or 1.65% to 56,747.14, while the broader NSE Nifty fell 284.45 points or 1.65% to 16,912.25.The global oil benchmark Brent crude oil futures rose 2.3% to US$71.58 per barrel.

The U.S. dollar index, which measures the strength of the U.S. dollar against a basket of six currencies, rose 0.13% to 96.23.

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According to exchange data, foreign institutional investors were net in the capital market on Friday because they sold shares worth Rs 3,356.17 crore.