Rupee plummets to Rs 75.91 against US dollar

Mumbai: 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.

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.

Though some restrictions were eased, "the extension could further worsen the economic outlook for the current fiscal year, which could weigh on the currency further," Reliance Securities said in a research note.

The local unit opened sharply lower at 75.85, then lost further ground to finally settle at 75.91 against the US dollar, down 33 paise over its previous close.

It had settled at 75.58 against the US dollar on Friday. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading unchanged at 100.40.