Rupee slumps 43 paise to close at ₹88.26 against US dollar

The rupee plunged 43 paise to close at ₹88.26 (provisional) against the US dollar on Monday, as broad strength in crude oil prices and month-end dollar demand from importers weighed on investor sentiment.

Forex traders said the rally in crude oil prices was driven by a potential US-China trade deal, which supports expectations for a stronger global oil demand.

At the interbank foreign exchange, the rupee opened at ₹87.87 against the greenback and fell to an intra-day low of ₹88.31 and a high of ₹87.86. It finally closed the day at ₹88.26 (provisional) against the greenback, down 43 paise from its previous close.

On Friday, the rupee appreciated 5 paise to close at ₹87.83 against the US dollar.

Traders continue to watch developments around trade negotiations and geopolitical events for further cues.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.08% lower at 98.86.

Brent crude, the global oil benchmark, was trading 0.85% lower at USD 65.39 per barrel in futures trading.

On the domestic equity market front, the Sensex jumped 566.96 points to settle at 84,778.84, while the Nifty climbed 170.90 points to 25,966.05.

Foreign Institutional Investors purchased equities worth ₹621.51 crore on Friday, according to exchange data.

Meanwhile, India's forex reserves increased by USD 4.496 billion to USD 702.28 billion during the week ended October 17, as the value of gold reserves rose further, the RBI said on Friday.

In the previous week, the overall reserves had jumped by USD 2.176 billion to USD 697.784 billion.