The rupee plunged 20 paise and settled below the 75 per US dollar mark on Thursday as strengthening American currency and losses in domestic equities weighed on investor sentiment. Forex traders said strong dollar, weak domestic equities and US Federal Reserve meeting minutes weighed on investor sentiment.
At the interbank forex market, the local unit settled for the day at 75.02 against the US dollar, down 20 paise over its previous close of 74.82.
During the session, the domestic unit witnessed an intra-day high of 74.93 and a low of 75.05 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.31 per cent to 93.17.
"The US dollar has strengthened overnight after the release of US Federal Open Market Committee (FOMC) minutes that were less dovish than expected," said Abhishek Goenka, Founder and CEO, IFA Global.
As per the FOMC minutes, the committee members have expressed concern over the continuing impact of COVID-19 on economic growth.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 398.14 points lower at 38,216.65 and the broader NSE Nifty fell 98.10 points to 11,310.30.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 459.01 crore on Wednesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 0.82 per cent to USD 45 per barrel.Meanwhile, the number of cases around the world linked to COVID-19 has crossed 2.24 crore and in India, the number of infections topped the 28-lakh mark.