Indian rupee slumps as dollar strengthens after hawkish Fed comments

The Indian rupee declined 23 paise to 76.65 against the US dollar (20.88 against the UAE dirham) in the opening trade on Monday tracking the strength of the dollar in the overseas market.

At the Indian interbank foreign exchange, the rupee opened on a muted note at 76.58 against the American dollar, then fell and touched an early low of 76.65 in initial deals, registering a fall of 23 paise over its previous close.

On Friday, the rupee declined by 25 paise to close at 76.42 against the US currency.

The rupee opened weaker against the US dollar weighed by hawkish comments from Federal Reserve Chair Jerome Powell last week, said Sriram Iyer, senior research analyst at Reliance Securities.

Most Asian and emerging market peers are trading weaker this Monday morning which could weigh on sentiments.

Meanwhile, global oil benchmark Brent crude futures fell 2.85 per cent to $103.61 per barrel.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.02 per cent to 101.23.

On the Indian equity market front, the 30-share Sensex was trading 645.45 points or 1.13 per cent lower at 56,551.70, while the broader NSE Nifty declined by 189.05 points, or 1.1 per cent, to 16,982.90.

(with inputs from PTI)

• Dubai