Rupee slumps 43 paise to 72.91 vs USD

Mumbai: The rupee tumbled 43 paise to end at a near two-week low of 72.91 against the US dollar on Monday amid a strengthening greenback and steady capital outflows.
Higher US Treasury yields, which rose above the 3 per cent mark, boosted the appeal for the dollar, analysts said. The dollar rose to near 1-month highs against global currencies.
Meanwhile, the local unit opened at 72.61, marginally higher as compared to its Friday’s close of 72.48. It touched a low of 72.95 on strong dollar demand, before recovering to 72.60. The rupee finally closed at 72.91, down 43 paise.
Foreign institutional investors net sold shares worth Rs 1,841.63 crore Monday, provisional data showed. Meanwhile, the Reserve Bank Mon onday announced that it will inject Rs 36,000 crore liquidity into the system through purchase of government bonds in October to meet the festival season demand for funds.
The auctions to purchase government bonds as part of the Open Market Operations (OMO) will be conducted in the second, third and fourth week of October. “Rupee continues to be weak as crude oil prices remains high. Unless we have comfort from crude oil prices, we are likely to see weakness in rupee. It is going to hover in 70-72 range,” a senior treasury official said. Brent crude was trading at USD 82.94 per barrel, up 0.25 per cent. “The central bank’s Rs 36,000 crore OMO to provide domestic liquidity could not stem the fall for the rupee.
“Among the emerging market currencies, rupee was the worst performer with loss of 42 paise to 72.91 against the Dollar today. Forex traders are awaiting some concrete steps from RBI MPC meeting scheduled on October 5,” said V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities. (PTI)