NEW DELHI: The rupee plunged to an all-time low versus the US dollar on Monday, 9th May as a surge in US Treasury yields following an aggressive rate hike by the Federal Reserve caused the greenback to strengthen globally.

Weakness in domestic equity markets and concerns over relentless sales of Indian assets by overseas investors also dragged the Indian currency lower, dealers said.

The rupee weakened past the 77/$1 level and was last trading at 77.1325/$1. The Indian currency had closed at a record low of 76.98 on March 7.

The local unit opened at 76.9580/$1 as against 76.9150/$1 at previous close. So far in the day, the currency moved in a band of 76.9580-77.3450/$1.

The outlook on the rupee has worsened since Russia’s invasion of Ukraine in late February as the conflict in Europe has led to a surge in global crude oil prices.

This has exerted considerable upward pressure on India’s current account and inflation as the country is a massive importer of the commodity.

“We are victims of that time when the rupee is hitting an all-time- low due to multiple reasons. To describe a few points - a stronger USD, weaker Asian currencies, rebound in oil prices, ongoing Russia-Ukraine war, FII outflow, and a surprise hike by the RBI to tackle inflation could be the major reasons behind the same,” CR Forex Advisors MD Amit Pabari said.