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Rupee settles 33 paise lower at 75.91 against US dollar

The rupee plummeted 33 paise to close at 75.91 (provisional) against the US dollar on Monday, tracking weak domestic equities and foreign fund outflows.

Forex traders said rising crude oil prices and concerns about the effectiveness of the fiscal stimulus package also weighed on investor sentiment.

Besides, market participants said the extension of the nationwide lockdown could weigh on the economic outlook of the country.

The local unit opened sharply lower at 75.85, then lost further ground to finally settle at 75.91 against the US dollar, down 33 paise over its previous close.

It had settled at 75.58 against the US dollar on Friday.

The government on Sunday extended the coronavirus lockdown for two more weeks with the fourth phase providing more relaxations outside the containment zones.

Though some restrictions were eased, “but the extension could further worsen the economic outlook for the current fiscal year, which could weigh on the currency further,” Reliance Securities said in a research note.

Meanwhile, domestic bourses were trading on a negative note with the benchmark Sensex plunging 748.26 points to 30,349.47 and the broader Nifty down 221.80 points at 8,915.05.

Foreign institutional investors were net sellers in the capital market, as they sold equity shares worth Rs 2,388.04 crore on Friday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 4.22 per cent to USD 33.87 per barrel. PTI