Rupee tumbles 37 paise to 74.89 against US dollar
The rupee Friday plunged 37 paise to 74.89 against the dollar as a massive sell-off in equities, amid worries over a new variant of Covid and capital outflows, hit the forex market sentiment.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.34 per cent down at 96.44. If capital outflows continue, the rupee is expected to hit the 75 mark.
“It’s the broad-based strength witnessed in the dollar index and the steep sell-off seen in domestic equities that has dragged down the local unit to three-week lows,” said Sugandha Sachdeva, VP- Commodity & Currency Research, Religare Broking.
The US dollar has been on a strong run scaling to its highest levels for the year as markets are anticipating that the US Fed will accelerate asset tapering and hike interest rates around mid-2022, with inflation running at levels not seen in decades. Besides, concerns about the new…
