Rupee has ended significantly lower and touched an all-time low against the US dollar on Monday. Traders were worried as mounting concerns about inflation may trigger more aggressive rate hikes by global central banks. Further, rupee slipped on a surge in crude oil prices. Sentiments were fragile with a private report that foreign funds’ ownership in domestic equities fell to pre-COVID lows and hit a multi-year low of 19.5 per cent in March this year in NSE500 companies valued at $619 billion. Meanwhile, India’s central bank is intervening in all foreign-exchange markets and will continue to do so to protect the rupee that slid to a record low. On the global front, dollar climbed to a two-decade high on Monday as rising U.S. Treasury yields prompted hedge funds to add to their bullish bets while the Chinese yuan weakened below 6.77 levels after weak trade data.
Finally, the rupee ended at 77.51 (Provisional), weaker by 61 paise from its previous close of 76.90 on Friday. The currency touched a high and low of 77.52 and 77.17 respectively.
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