Rupee drops by 13 Paise to 75.16 against USD

India’s real GDP growth came in at 8.4% YoY in FYQ2 2021 (from 20.1% YoY in FYQ1 2021).

At the interbank foreign exchange, the rupee declined by 13 Paise to 75.16 against the US dollar in opening trade on Monday, as dampened domestic equities and persistent foreign fund outflows weighed on the local unit.

Forex traders held the growing concerns over the Omicron variant responsible for adverse impact on economic recovery as well as the firm crude oil prices that weighed down on the local unit.


India’s real GDP growth came in at 8.4% YoY in FYQ2 2021 (from 20.1% YoY in FYQ1 2021). Domestic equity markets declined for the month due to the unprecedented situation of the COVID-19, toeing commentary by the US Federal Reserve, FPI outflows and profit-booking by investors with equities trading at life high.

The market capitalisation declined which covered the large-cap and mid-cap. Among the sectors, Banks and Automobiles declined the most while Healthcare and IT gained for the month. Daily new cases continued to fall gradually and stood below 8000. The recovery rate stood above 98%. The total number of vaccines administered was around 1.3 billion.

Earlier on September 24, 2021, the rupee opened on a weak note and fell to 73.77 against the dollar, registering a decline of 13 Paise from the last close, even as the domestic equity market was trading with handsome gains.

Developed market equities tanked for the month by around 2%, on the other hand, emerging market equities declined by almost 4% for the same period. The news in November was inhabited by the resurgence of COVID-19 and the potential effect of the new variant. Gold and base metal prices declined marginally.