The rupee plunged against the US dollar early on Tuesday on renewed hectic all-round dollar demand amidst an acute cash dollar shortage scare with sentiments turning distinctly weak for a further sharp decline.
Nervousness gripped the Interbank Foreign Exchange Market in Mumbai this morning, sending the rupee tumbling down to Rs 44.1450/1550 per dollar, sharply lower from the last Friday's close of Rs 44.03/04, a dealer said.
The rupee opened on a distinctly weak note at Rs 44.10/13 per dollar.
The forex market was closed on Monday for the second phase of Lok Sabha elections.
Nervous operators scrambled to cover short dollar positions in the face of an acute cash dollar shortage, weakening the rupee by over 11 paise early today.
Customary month-end dollar demand and uncertainties over the Lok Sabha polls also weighed heavily on the rupee, dealers said.
Meanwhile, India's foreign exchange reserves shot up to $117.6 billion during the week ended April 16, up $1.5 billion from the previous week levels, data released by the Reserve Bank of India showed. The entire increase came through accrual of foreign currency assets.
© 2026