Rupee sheds 0.2% to dollar as Covid worries trigger slump in yuan

Talk of persistent rate hikes by US Fed officials also drags rupee lower

The rupee weakened 0.2 per cent against the dollar on Monday as rising Covid-19 cases in China sparked fears of strict restrictions in the world’s second largest economy, eroding appetite for emerging market currencies.

Comments by several members of the US Federal Reserve in support of continued increases in interest rates also dragged the rupee lower as the dollar index notched up gains.

The rupee closed at 81.85 to the dollar on Monday as against 81.69 on Friday. So far in 2022, the domestic currency has depreciated 9.2 per cent versus the greenback.

With China facing a flare-up in Covid-19