Rupee plunges 58 paise to close at all-time low of 81.67; Sensex and Nifty tumble

According to experts, focus will now shift to RBI's meeting this week, with its decision due on Friday.

The rupee plunged 58 paise to close at an all-time low of 81.67 (provisional) against the US dollar on September 26, 2022 as the strengthening of the American currency overseas and risk-averse sentiment among investors weighed on the local unit.

Moreover, escalation of geopolitical risks due to conflict in Ukraine, a negative trend in domestic equities and significant foreign fund outflows sapped investor appetite, forex traders said.

At the interbank foreign exchange market, the local currency opened at 81.47, then fell further to close at an all-time low of 81.67 against the American currency, registering a decline of 58 paise over its previous close.

On Friday, the rupee slumped 30 paise to close at 81.09, its previous record low.

This is the fourth consecutive session of loss for the domestic unit, during which it has lost 193 paise against the American currency.

"Another day of large gains for the dollar versus the rupee as it fell for the fourth day in a trot amid risk-averse sentiments and unprecedented strength in the greenback following Fed tightening and recession worries," said Dilip Parmar, Research Analyst, HDFC Securities.

Spot USD-INR may head towards 82 as strength in the dollar index continues with surging bond yields, Parmar said, adding that in the near-term, spot USD-INR is having resistance at around 82 and support at 81.05.