Rupee tumbles 20 paise to 74.77 against US dollar in early trade

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The Indian rupee depreciated 20 paise to 74.77 against the US dollar in opening trade on Monday as firm American currency and weak domestic equities weighed on investor sentiment. At the interbank foreign exchange, the rupee opened at 74.73 against the dollar, then fell further to 74.77, registering a fall of 20 paise over its previous close.

On Friday, the rupee had settled at 74.57 against the US dollar. The Indian Rupee started on a weaker note this Monday against the greenback tracking the strength of the dollar, Reliance Securities said in a research note. Asian currencies have started weak against the greenback this Monday morning and will weigh on sentiments.

Moreover, the local unit could remain weak, as investors will flee towards the safety of the greenback amid concerns over rising COVID-19 cases globally, the note added. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading up 0.02 per cent at 92.70. Global oil benchmark Brent crude futures fell 0.57 per cent to USD 73.17 per barrel.

On the domestic equity market front, BSE Sensex was trading 345.62 points or 0.65 per cent lower at 52,794.44, while the broader NSE Nifty declined 92.50 points or 0.58 per cent to 15,830.90. Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 466.30 crore, as per exchange data.

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