Rupee opens at 77.52/$ vs Wednesday’s close of 77.24/$

Indian rupee opened at 77.52 against the US dollar on Thursday (May 12). This is lower than its close of 77.24 against the US dollar on Wednesday. Rupee opened sharply lower at 77.52 against the American dollar and went down by 30 paise to 77.55 paise from the last close at the interbank exchange. Domestic currency was moving in the range of 77.50 and 77.57 in initial deals.  

Rupee settled at 77.25 against US dollar in the previous session whereas dollar traded 0.10 per cent higher at 103.95. On the domestic front, BSE Sensex crashed over 1,000 points whereas Nifty went below 15,900. Global oil benchmark Brent crude futures went down by 1.11 per cent to $106.32 per barrel.  

Why did Rupee slump to 77.52 vs US dollar today?  

The slump in the value of Indian rupee was triggered by lackluster trend in the domestic equity markets and an investor sentiment weighed down by firmer American currency. Domestic equity markets were impacted by foreign fund outflows and a hike in crude oil prices, news agency PTI reported.  

Foreign institutional investors (FIIs) remained net sellers in the capital market as they offloaded shares worth Rs 3,609.35 crore, as per stock exchanges.  

The Reserve Bank is also likely to hike inflation projections and consider rate hikes to tame inflation in its upcoming Monetary Policy Committee (MPC) meeting from June 6-8. As per sources, tightening of policy rates by central banks including RBI would adversely impact demand in next 6-8 months and slow the recovery process.  

(With agency inputs)