The domestic currency Rupee plunged by 52 paise to close at 74.87 against the American Dollar on Monday as fresh lockdown measures by some states to control growing cases of COVID-19 unnerved investors and stoked fears of forex outflows.

On the weekend, the rupee had settled at 74.35 a dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.49 per cent to 91.11.

Losses in the domestic equity markets also weighed on the rupee which was the worst performer among Asian currencies on Monday, analysts said.

At the forex market, the local unit opened lower at 74.80 against the greenback and touched a low of 75.05 in day trade. Weakness in the US dollar and losses in crude oil, however, capped the rupee's fall and the local unit recovered some of the losses to close at 74.87, registering a fall of 52 paise over its previous close.

According to provisional exchange data, Foreign institutional investors (FIIs) were net buyers in the capital markets on Friday with the purchase of shares worth Rs 437.51 crore.

Meanwhile, Brent crude futures, the global oil benchmark, was trading 0.33 percent down at USD 66.55 per barrel. On the Indian equity market, the BSE Sensex closed 882.61 points lower at 47,949.42, while the broader NSE Nifty declined by 258.40 points to 14,359.45.

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