New Delhi: The Indian rupee breached the 77 a dollar mark for the first time on Monday early trade, mainly because of the strength of the US currency in the global market and unabated foreign fund outflows.
According to the PTI, at the interbank foreign exchange, the rupee opened at 77.17 against the US dollar and then lost ground to clock at 77.42, registering a fall of 52 paise from the last close.
In its previous trading on Friday, the rupee had slumped 55 paise to close at 76.90 against the US dollar.
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Sriram Iyer, senior research analyst at Reliance Securities, said the Indian rupee opened weaker on Monday against the dollar due to weak global cues in the equity markets amid concerns over economic outlook and rising bond yields.
According to forex traders, risk appetite has weakened amid mounting concerns about inflation that may trigger more aggressive rate hikes by the global central banks.
In its past interventions, the RBI has been aggressive in the foreign exchange market and was seen protecting the Rs 77 per dollar levels.
The latest data released by RBI on Friday showed the country’s foreign exchange reserves fell to $598 billion for the week ended April 29.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.35 per cent higher at 104.02, tracking rising US yields and fears about higher interest rates.
According to reports, international markets sank as traders asked whether the US Federal Reserve's interest rate hike was enough to tackle inflation, while the Chinese leaders warned against doubting their zero-Covid stance.
The Bank of England, which raised interest rates, warned about a possible risk of recession.
Moreover, Asian and emerging market peers started weak this Monday morning and will weigh on sentiments.
On the other hand, global crude oil benchmark Brent crude futures rose 0.14 per cent to $112.55 per barrel.