Rupee plunges 21 paise to end at 73.28 against US dollar

The rupee dived 21 paise to settle at 73.28 (provisional) against the US dollar on Monday, tracking weak domestic equities and a rebound in the American currency.At the interbank forex market, the domestic unit opened at 73.21 against the greenback. It swung between a low of 73.30 and a high of 73.18 during the session. It finally settled at 73.28, down 21 paise against its previous close.On Friday, the rupee had settled at 73.07 against the American currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.15 per cent to 90.91.

"Indian Rupee depreciated amid strong dollar and risk aversion in the domestic markets," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.

Demand for Dollar increased on worries over rising coronavirus cases across the globe and decline in stock markets. Market sentiments were hurt on weaker-than-expected economic data from the US, he noted.

Further, traders remained cautious ahead of Janet Yellen appearance before the Senate Finance Committee and President-elect Joe Biden's inauguration, he said, adding that the sharp fall was prevented on steady FII inflows.On the domestic equity market front, the BSE Sensex ended 470.40 points or 0.96 per cent lower at 48,564.27, while the broader NSE Nifty declined 152.40 points or 1.06 per cent to 14,281.30.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 971.06 crore on a net basis on Friday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, declined 0.24 per cent to USD 54.97 per barrel. 

(IMAGE CREDITS:PTI)