Millennium Post

Rupee trips for 4th day, down 10 paise at 71.21 against USD

Mumbai: The Indian rupee logged its fourth straight loss on Tuesday, dropping another 10 paise to settle at 71.21 against the US dollar amid concerns over IMF revising downwards India's growth forecast and weak quarterly earnings.

Besides, heavy sell-offs in domestic equity market for a second session in a row and the outbreak of a deadly virus in China also impacted forex market sentiment. At the interbank foreign exchange market, the local currency opened on a weak note at 71.17. During the day, it saw a high of 71.13 and a low of 71.24.

The Indian currency finally settled at 71.21, lower by 10 paise against its previous close.

However, weaker greenback overseas and easing crude oil prices helped the rupee restrict its losses to some extent.

The domestic unit had settled at 71.11 against the American currency on Monday.

"Rupee fell following sell-off in domestic equities and broad strength in the US dollar," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.

Somaiyaa added that the "sell-off in the currency was triggered after the IMF trimmed its global growth forecast to 3.3% down from its earlier projection of 3.4% and also cut the 2021 forecast to 3.4% from 3.6%."

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