The rupee on Monday declined by 19 paise to close at a one-week low of 75.73 against the US dollar due to fiscal deficit concerns as the government raised its market borrowing programme for 2020-21 in view of COVID-19 pandemic.
Forex traders said while positive domestic equities supported the local unit, market participants were concerned about the impact of increased borrowing on the fiscal deficit.
A foreign brokerage on Monday estimated the fiscal deficit to come at 5.8 per cent of the GDP in 2020-21 as against the budget target of 3.5 per cent as the government increased the borrowing programme by more than 50 per cent to Rs 12 lakh crore from the budget estimate of Rs 7.8 lakh crore.