The rupee fell 48 paise to 81.26 (provisional) against the US dollar on Monday, tracking the American currency’s recovery and a flat trend in domestic equities.
Rising crude oil prices, according to forex traders, have also weighed on investor sentiment.
The local currency opened at 80.53 against the US dollar on the interbank foreign exchange market, but quickly lost ground, eventually settling at 81.26, a 48-paise drop from its previous close.
The rupee gained 62 paise against the dollar on Friday, closing at 80.78.
According to official data released on Friday, India’s industrial production increased by 3.1% in September, boosted by the manufacturing, mining, and power sectors.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, increased 0.59 percent to 106.91.
Brent crude futures fell 0.63 percent to USD 95.93 per barrel, the global oil benchmark.
The 30-share BSE Sensex fell 170.89 points, or 0.28 percent, to end at 61,624.15, while the broader NSE Nifty fell 20.55 points, or 0.11 percent, to 18,329.15.
According to exchange data, Foreign Institutional Investors (FIIs) were net buyers in capital markets on Friday, purchasing shares worth Rs 3,958.23 crore.
Domestically, wholesale price-based inflation fell to a 19-month low of 8.39 percent in October, owing to lower fuel and manufactured-goods prices.
Meanwhile, the Reserve Bank of India reported on Friday that India’s foreign exchange reserves fell by USD 1.087 billion to USD 529.994 billion in the week ended November 4 due to a sharp decline in gold reserves.
Source:BS