Currency Buzz: INR Plunges Amid Strong Dollar, Elevated Crude Prices

11 Feb 2022 , 05:42 PM

The Indian rupee plunged by 24 paise to close at 75.39 (provisional) against the US currency on Friday due to fears of an aggressive rate hike by the Federal Reserve after US inflation raced to a 40-year high in January. Besides, muted domestic equities, sustained foreign fund outflows and elevated crude oil prices weighed on the local unit. At the interbank foreign exchange, the rupee opened at 75.40 against the American dollar, and later witnessed an intra-day high of 75.27 and a low of 75.46 against the greenback. The local unit finally ended the day at 75.39, down 24 paise from the previous close. On Thursday, the rupee had settled at 75.15 against the US dollar, after the Reserve Bank of India kept the benchmark lending rate unchanged and said it will continue with the accommodative stance. Meanwhile, the dollar index, which gauges the greenbacks strength against a basket of six currencies, was trading 0.35 per cent higher at 95.88.

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