Rupee widens losses by 10 paise to 71.21 against US dollar

Mumbai: The Indian rupee logged its fourth straight loss on Tuesday, dropping another 10 paise to settle at 71.21 against the US dollar amid concerns over IMF revising downwards India's growth forecast and weak quarterly earnings.

Besides, heavy sell-offs in domestic equity market for a second session in a row also impacted forex market sentiment.

At the interbank foreign exchange market, the local currency opened on a weak note at 71.17. During the day, it saw a high of 71.13 and a low of 71.24.

The Indian currency finally settled at 71.21, lower by 10 paise against its previous close.

The domestic unit had settled at 71.11 against the American currency on Monday.

"Rupee fell following sell-off in domestic equities and broad strength in the US dollar," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.

Somaiyaa further added that the "sell-off in the currency was triggered after the IMF trimmed its global growth forecast to 3.3 per cent down from its earlier projection of 3.4 per cent and also cut the 2021 forecast to 3.4 per cent from 3.6 per cent."

The International Monetary Fund (IMF) on Monday lowered India's economic growth estimate for the current fiscal to 4.8 per cent and listed the country's much lower-than-expected GDP numbers as the single biggest drag on its global growth forecast for two years.

(PTI)