The rupee fell sharply against the US dollar, approaching the 75 level against the US dollar. At day's low rupee fell to 74.97 before pulling back to 74.72, according to Bloomberg data, tracking weakness in other Asian currencies and a lackluster domestic equity market. The rupee had closed at 74.60 in the precious session.
Over the past four sessions, the domestic unit has lost 146 paise in its valuation against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.25% to 92.305.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading flat at 49,723. Foreign institutional investors were net buyers in the capital market and purchased shares worth 110.85 crore on Thursday, according to exchange data.
The rupee has fallen sharply after the RBI on Wednesday committed to a huge government bond purchases programme what raised prospects of plenty of rupee liquidity, and potential inflation, both of which undermined sentiment toward the currency.
"The rupee traded on a weaker note majorly on account of 1.00 lac cr of bond-buying announced by RBI, unwinding of carry trades, perception of full lockdown due to rising cases, and panic buying by importers. However, with prevailing dollar weakness and pipeline of upcoming IPO’s shall attract some inflows that could cap losses in rupee close to 75.20 levels. Technically, USD-INR holds next resistance near 75.00 levels while support is at 74.20 levels over the short-term keeping the overall range between 74.00-75.20 levels," said CR Forex Advisors in a note.
(With inputs from agencies)