The Indian rupee continued to be lower against the U.S. dollar in evening deals on Monday, as mounting worries about China's economy and apprehensions about whether market regulator SEBI will review participatory notes norms dragged down regional stocks.

The benchmark index BSE Sensex fell 550.93 points or 1.96 percent to 27,561.38, marking its biggest single-day loss since June 2. The broader Nifty index fell 160.55 points or 1.88 percent to 8,361, its biggest single-day loss since June 11.

In an attempt to calm foreign investors, Finance Minister Arun Jaitley said today that the government would not take any "knee-jerk" reaction that will adversely impact India's investment climate.

He said that the government will study the recommendations of the Supreme Court-appointed SIT on black money before taking a stand. "It is too early to say what view the government would take, but it will certainly not take any such action in a knee-jerk manner," he added. The report by the special investigations team had suggested greater oversight of money laundering in stocks.

The rupee fell to 64.2055 a dollar, a level not seen since June 17. This is a 0.18 percent decrease from Friday's closing value of 64.0930. If the rupee continues fall, 65.5 is possibly seen as its next downside target level.

US Dollar vs INR (FX:USDINR)
Forex Chart
From Mar 2024 to Apr 2024 Click Here for more US Dollar vs INR Charts.
US Dollar vs INR (FX:USDINR)
Forex Chart
From Apr 2023 to Apr 2024 Click Here for more US Dollar vs INR Charts.