Rupee slumps to 4-month low of 74.16 against dollar

MUMBAI: The Indian rupee sank 75 paise to 74.16 against the US dollar on Wednesday, the lowest level since November 20, after the Reserve Bank of India maintained status quo on policy rates for the fifth time in a row.

The central bank kept its key policy repo rate unchanged at 4 per cent, but warned that the recent surge in Covid-19 infections has created uncertainty over economic growth recovery.

At the interbank forex market, the domestic unit opened at 73.52 against the US dollar, then fell further to 74.16, registering a fall of 75 paise over its previous close.


On Tuesday, the rupee had settled at 73.42 against the American currency.

Reserve Bank of India on Wednesday expectedly left interest rates unchanged and maintained an accommodative stance as the economy faces a renewed threat to growth due to the resurgence of coronavirus cases.

The number of new coronavirus cases in India hit a record daily high since the outbreak of the pandemic with over 1.15 lakh new infections being reported in a span of 24 hours, pushing the nationwide Covid-19 tally to 1,28,01,785, according to the Union Health Ministry data updated on Wednesday.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 92.38.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 1,092.75 crore on Tuesday, according to exchange data.