The rupee plummeted by 33 paise to close at 75.91 against the US dollar on Monday, tracking weak domestic equities and foreign fund outflows.Forex traders said rising crude oil prices and concerns about the effectiveness of the fiscal stimulus package weighed on investor sentiment.
“India’s rupee led losses among emerging-market currencies in Asia on disappointment over the Government’s stimulus announcements. Spot USDINR is expected to find resistance around 76.50 on expectation of foreign fund inflows at lower equity levels,” said Devarsh Vakil, Head Advisory, HDFC securities.
Market participants also said that the extension of the nationwide lockdown could weigh on the economic outlook of the country.
The Government on Sunday extended the coronavirus lockdown for two more weeks with the fourth phase providing more relaxations outside the containment zones.