The Indian rupee dropped nine paise to 76.15 against the US dollar (20.74 versus the UAE dirham) on Monday morning as sustained sell-offs in the Indian equities by foreign investors hurt the local currency's recovery prospects.
Starting on a tepid note, the rupee traded in a narrow band of 76.13 to 76.16 in early deals at the interbank foreign exchange.
Like the Indian equities, which have been in the bear territory of late, the rupee too has given up to pressures created by a host of factors like surging cases of Omicron variant of Covid-19 and weak global sentiment.
Last week, the rupee recorded its fourth weekly decline amid growing concerns over the Omicron variant of coronavirus.
Experts, however, are of the view that as major events of the year are almost done, forex markets may stay calm in the coming week.
Meanwhile, the US dollar index, which measures the greenback's strength against the basket of six currencies, rose 0.05 per cent to 96.61.
On the Indian equity market front, the BSE Sensex was down 1,048.11 points or 1.84 per cent at 55,963.63, while the broader NSE Nifty declined 323.75 points or 1.91 per cent to 16,661.45.
Brent crude futures, the global oil benchmark, fell 2.23 per cent to $71.44 per barrel.
(with inputs from PTI)
Benchmark S&P 500 index rises 1.8 per cent
Spot gold was trading at $1,785.82 per ounce at 9.20am UAE time
Spot gold was trading at $1,771.62 per ounce, down by 0.2 per cent at 9.15am
Analysts and forex experts caution that the political instability will continue to weigh on the rupee's future and may slow the recovery pace in coming days