Millennium Post

₹ slumps 43 paise to 72.91 vs $, ends near 2-week low

Mumbai: The rupee tumbled 43 paise to end at a near two-week low of 72.91 against the US dollar 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 Monday 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 $82.94 per barrel, up 0.25 per cent.

Meanwhile, 30-share BSE Sensex soared 299 points in see-saw trade to close at 36,526.14, while the NSE Nifty jumped 77.85 points to reclaim the 11,000-mark.

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