Today, the Indian rupee hit a high record low for the seventh straight day by falling to 80.01 against the US dollar.

Yesterday, the rupee closed at 79.97. The dollar index, which gauges the greenback against six counterparts, increased to 107.33.

“The European Central Bank scheduled to meet on Thursday in its regular policy meeting is expected to raise interest rates for the first time in 11 years. Possible interest rate hikes by the ECB supported the euro and pushed the dollar index lower. The dollar index slipped to one-week lows on Monday against the basket of currencies. We expect the dollar index to remain volatile this week ahead of the ECB policy meeting and could face steep resistance around 109.00 levels,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

“On the other hand, the rupee could not hold on to its gains and slip again. Despite profit-taking in the dollar index, the rupee slipped again. Crude oil prices jumped again and restricted gains of the rupee. However, recovery in the domestic equity markets supported the rupee at lower levels. We expect the rupee to remain volatile this week and could hold its key support level of 80.55 on a closing basis,” he added.