Rupee sheds 40 paise against US dollar on aggressive Fed hike fears

The rupee gave up 0.5 per cent versus the dollar on Monday as a stronger-than-expected US jobs report rekindled concerns over aggressive rate hikes by the Federal Reserve, dealers said.

The domestic currency closed at 79.65 per US dollar against 79.25 per dollar at previous close. So far in the current calendar year, the rupee has shed 6.7 per cent versus the greenback.

On July 19, the rupee had weakened to a lifetime low of 80.06 per US dollar. However, the currency had regained much ground versus the dollar in the weeks that followed as weak US economic data strengthened