The Rupee is probably heading to 76-77 levels against the US Dollar from the current levels of 74-74.70. It has already lost 2.03% this year. Two reasons: One, the RBI's loose liquidity stance. It is on ‘accommodative' model to aid growth. This, along with a barrage of liquidity infusion measures including the Rs One lakh crore G-SAP plan will mean excess Rupee liquidity. When the RBI artificially keeps the interest rates low, it will prompt big investors to pull out money to home markets where rates are inching up. Thirdly, the resurgence of Covid. A depreciating Rupee means everything in dollar terms turns costly. For every dollar, you need to pay more Rupees now.