The Indian rupee witnessed a weak session on Monday and depreciated by 53 paise during mid-day trade deals to an intra-day low of 72.7363 per US dollar. Forex dealers said a strong US dollar, along with heavy sell-off in the domestic stock market and higher crude oil prices, weighed on the rupee’s sentiment.
The rupee had opened nearly 27 paise lower at 72.47 against the dollar on Monday, Bloomberg data showed. At the time of reporting, the Indian rupee was trading 37 paise lower at 72.5725 against the American currency from its Friday’s close at 72.2038/$.
“For the domestic currency, 72.92 is a major level to watch below which more downside is expected, while on the other side, 71.50 and 70.71 are the upside levels,” Geojit Financial Services said in a note.
Meanwhile, weakness in the domestic currency kept IT and media stocks in the green even as the Sensex and Nifty plunged in today’s trade session. The Sensex slumped over 600 points and the NSE Nifty gave up the 11,000-mark in Monday’s trade session.
According to a Reuters report, the dollar held firm on news that China has canceled trade talks with the United States, while investors eyed this week’s U.S. Federal Reserve meeting for guidance on future rate hikes.
“On the Global front, dollar index recouped some of its losses, as China has officially called-off its trade talks with the US,” said Hiren Sharma, Portia Advisory Services LLP. “DXY now at 94.28, keeping other major currencies, especially emerging ones, at bay,” he added.