Rupee drops to 75.78 against USD on FPI outflow, carry trade unwinding.


The rupee on Friday fell by another 18 paise to close at a nearly 18-month low of 75.78 against the US dollar on sustained foreign fund outflows and carry-trade unwinding. The rupee opened lower at 75.65 a dollar and later plunged to the day’s low of 75.85 in line with a lacklustre trend in the equity markets.

The currency pared some of the losses in the closing session to end at 75.78, its lowest closing level since June 22, 2020, amid concerns over the impact of the new Covid variant on the economy. The domestic currency lost 66 paise or 0.88 per cent against the dollar during the week. If foreign portfolio investor (FPI) outflows continue, the rupee is likely to fall below 76 level. FPIs have pulled out over Rs 80,000 crore since October this year. They had sold stocks worth over Rs 16,000 crore in December.

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