Rupee sank 105 paise vs the US dollar to close at 74.47 on Wednesday amid concerns over surging COVID-19 cases. It marks the biggest one day fall for the Rupee in nearly 2 years.
Strengthening crude prices and also a stronger dollar on the back of Fed meeting minutes added pressure onto the local currency driving it to the biggest fall since August 2019.
The drop has taken the rupee to a four month-low vs the US dollar. StanChart is expecting the Rupee to drop as low at 76/$ by the year end.