Rupee Drops 38ps To 85.82/$

Mumbai: The rupee declined 38paise -- steepest in more than five weeks -- to settle at 85.82 against the US dollar on Monday amid the wide-spread global turbulence over escalated tariff war and fear of a global economic slowdown. A steep decline in crude prices and a weaker American currency failed to arrest the fall in domestic currency due to the withdrawal rush by foreign as well as domestic equity investors, forex traders said.

They said the currency exchange markets globally faced extreme volatility as investors tried to escape risks, following the US administration’s sweeping reciprocal tariffs on multiple countries and China’s retaliatory move on the American imports. On the domestic macroeconomic front, market participants were watchful as the Reserve Bank of India’s (RBI’s) monetary policy committee began its three-day deliberations on key interest rates. The decision of the six-member rate-setting panel will be announced on Wednesday.

At the interbank foreign exchange, the rupee opened at 85.79 and moved in a wide range between the high of 85.57 and the low of 85.90 against the greenback during the day. The unit ended the session at 85.82 against the dollar, registering a loss of 38paise from its previous closing level. Earlier, the domestic unit had witnessed such a steep fall on February 25 when it depreciated 47paise.

On Friday, the rupee settled 14paise lower at 85.44 against the US dollar, a day after gaining 22paise on Thursday, following the implementation of the US’ reciprocal tariff on about 60 countries. Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee declined on risk-off sentiments in global markets and a strong US dollar.