Rupee falls sharply to the dollar as pandemic resurgence grips Europe

Sheds 24 paise to end at 73.85 on heavy greenback purchases by nationalised banks to meet month-end oil import bills

The Indian rupee depreciated sharply on Monday as Europe got under a renewed grip of the coronavirus pandemic and risk aversion pushed the dollar index higher.

The rupee fell about 24 paise on Monday to close at 73.85 a dollar as the dollar appreciated against major currencies, and nationalised banks bought dollars from the markets to meet month end oil import bills. The dollar index rose 0.27 per cent to 93.02 against major global currencies. 

Though it was not clear if the Reserve Bank of India (RBI) bought dollars to boost its reserves further, currency dealers say at $555 billion, the reserves