Rupee again crashes below 72-mark, plunges 81 paise to 72.65 against dollar

On Friday, the rupee had gained 34 paise to close at a one-week high of 71.84 against the US dollar on positive macro data and hopes of policy intervention by the government to defend the volatile currency.

The rupee depreciated 81 paise to 72.65 against the dollar in early trade Monday at the forex market, despite the government’s steps to stem a steep fall in the currency, amid reports that the US could announce a new round of tariffs on Chinese imports later in the day.

Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India, on Tuesday, Jan. 30, 2018. Indian Prime Minister Narendra Modi has a tough balancing act in this week's budget: maintaining fiscal prudence or handing out cash to placate rural voters ahead of next year's election. Photographer: Dhiraj Singh/Bloomberg (Bloomberg)

The dollar rose against a basket of major currencies overseas, with investors cautiously awaiting news on the implementation of US tariffs on an additional USD 200 billion of Chinese imports, forex dealers said.

On Friday, the rupee had gained 34 paise to close at a one-week high of 71.84 against the US dollar on positive macro data and hopes of policy intervention by the government to defend the volatile currency.

Meanwhile, the benchmark BSE Sensex tumbled by 295.40 points or 0.78 per cent to trade below the 38,000 mark at 37,795.24 in early trade.