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Rupee tanks 109 paise to all-time low of 76.29 against dollar

Foreign portfolio investors (FPI) have offloaded over Rs 1 lakh crore this month.

ETMarkets.com|
Last Updated: Mar 23, 2020, 06.13 PM IST
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Over the next couple of weeks, there is growing risk of USD-INR inching towards 78 levels on spot.
NEW DELHI: The rupee on Monday cracked 109 paise to hit its fresh lifetime low of 76.29 against the greenback following heavy selling in the domestic equity market amid a rise in the coronavirus cases in the country.

Sustained selling by foreign institutional investors further weighed on the forex market sentiment. Foreign portfolio investors (FPI) have offloaded over Rs 1 lakh crore this month over heightened fears of a coronavirus-induced global recession.

The number of global Covid-19 infections has shot past 3,00,000. Worldwide fatalities topped 14,000, PTI reported. Cases in India spiked to 415, according to Health Ministry log.

Anindya Banerjee, DVP, Currency Derivatives and Interest Rate Derivatives at Kotak Securities said, “Pandemic is causing widespread lockdowns, causing the economy to grind to halt. In such a situation, emerging market currencies are vulnerable due to their dependence on dollar debt.”

He further added that a scramble for dollars would continue as long as the panic lasts. RBI would continue to sell dollars aggressively, but that may not stop the rupee’s fall. Over the next couple of weeks, there is growing risk of USD-INR inching towards 78 levels on spot.

Earlier during the day, the benchmark BSE Sensex tanked 3,934.72 points or 13. 15 per cent to 25,981.24 on Monday in its worst ever crash. Likewise, the NSE Nifty also dipped 1,135.20 points or 12.98 per cent to settle at 7,610.25.

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