Rupee vs Dollar Rate Today: The rupee depreciated by 38 paise, or 0.4 per cent, to close at a provisional 87.33 against the American dollar on Monday. That marked the domestic currency’s biggest single-day fall in more than a month, after it declined by 39 paise on February 5. According to analysts, volatility in crude oil prices amidst the ongoing uncertainties around trade tariffs and foreign fund outflows battered the rupee against the US currency.
During the session, the rupee fell by as much as 41 paise, or half a per cent, to hit 87.36 after starting the day weaker at 87.24 against its previous close of 86.92.
However, weakness in the greenback overseas kept the downside in the rupee in check. The dollar index—which measures strength in the American currency against six peers other than the rupee—was last seen trading 0.1 per cent lower at 103.7. The index contains six components: the euro, the Japanese yen, the British pound, the Canadian dollar, the Swedish krona and the Swiss franc.
Weakness in the rupee came on a day investors lost Rs 4.43 lakh crore on Dalal Street as the market value of BSE-listed companies slumped to Rs 393.86 lakh crore from Rs 398.29 lakh crore on Friday, according to provisional exchange data.
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Analysts say that persistent selling by foreign institutional investors (FIIs) weighed on the Indian financial market. As of Friday, March 7, FIIs have net sold Indian equities worth Rs 15,501.6 crore for the month, while domestic institutional investors (DIIs) have made net purchases of Rs 20,950.9 crore, according to provisional data.
Mild gains in oil prices aided demand for the American dollar, putting pressure on the rupee. Global oil benchmark Brent futures declined as much as 0.4 per cent to $70.67 per barrel on Monday.
Meanwhile, the country’s foreign exchange (forex) reserves dropped by $1.78 billion to $638.698 billion in the trading week from February 24 to February 28, showed RBI data released last week. The forex reserves had gained by $4.76 billion to $640.48 billion in the previous week.
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With inputs from agencies
