Rupee ends 25 paise lower at 73.85 per dollar

Indian rupee ended 25 paise lower at 73.85 per dollar, amid selling seen in the domestic equity market.

It opened 17 paise lower at 73.77 per dollar against Friday's close of 73.60 and traded in the range of 73.69-73.88.

At 14:10 IST, the Sensex was down 689.21 points or 1.69% at 39996.29, and the Nifty was down 207 points or 1.74% at 11723.40.

The US dollar advanced against the rupee although it is falling versus major currencies, its major counterparts, as hopes rose that Congress will be able to agree a US relief package deal. The recent underperformance of the rupee was observed despite continued FII flows, said ICICIdirect:.

The dollar-rupee October contract on the NSE was at 73.65 in the last session. The open interest in the October series declined 7.8% while it increased 13.4% in the next series, it added.

Oil prices fell on Monday, extending last week's losses, as a jump in COVID-19 infections in the United States and Europe raised alarms over crude demand, while the prospect of increased supply also hurt sentiment.

“The upbeat US economic data is downplaying the need for a fiscal package but overall the volatility will remain heightened amid back and forth stimulus negotiations. The USDINR spot is trading in a narrow range with an upward bias," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.