Rupee plummets 60 paise to close at all-time low of 77.50USD

Mumbai, May 9 (PTI) The rupee extended its losses and slumped 60 paise to close at a record low of 77.50 (provisional) against the US dollar on Monday, pressured by the strength of the American currency overseas and unabated foreign fund outflows.

Forex traders said risk appetite has weakened amid mounting concerns about inflation that may trigger more aggressive rate hikes by global central banks.

At the interbank foreign exchange market, the rupee opened lower at 77.17 against the greenback and finally settled for the day at 77.50, down 60 paise over its previous close.

During the trading session, the rupee touched its lifetime low of 77.52.

On Friday, the rupee had slumped 55 paise to close at 76.90.

In the last two trading sessions, the rupee has lost 115 paise against the greenback.

"Indian Rupee spot plunged to record lows, tracking weakness in Asian peers amid a stronger dollar index and surging treasury yields in the US. Equity markets witnessed sharp sell off as real rates in US turned positive and investors turned risk-averse evaluating the need for a higher rate hike to tame the inflation going forward," said Royce Vargheese Joseph - Research Analyst - Currency and Energy, Anand Rathi Shares and Stock Brokers.

Joseph further said "elevated crude prices and rising domestic inflation, well above RBI's upper band, might prompt further FII selling from domestic securities. Meanwhile, RBI's off cycle meeting on 4th May did little to strengthen the Rupee. Going forward, we might see the rupee spot weakening towards 77.8 levels." The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.33 per cent higher at 104, tracking rising US yields amid fears about higher interest rates.

Global oil benchmark Brent crude futures fell 1.68 per cent to USD 110.50 per barrel.

The 30-share BSE Sensex ended 364.91 points or 0.67 per cent lower at 54,470.67, while the broader NSE Nifty fell 109.40 points or 0.67 per cent to 16,301.85.

Foreign institutional investors remained net sellers in the capital market on Friday, as they offloaded shares worth Rs 5,517.08 crore, as per stock exchange data.