Rupee Edges Lower To Close At 75.71 Vs Dollar Amid COVID-19 Lockdown
by NDTVThe rupee is down 6.10% against the dollar so far this year
After starting the day nearly unchanged at 75.67 against the greenback compared to its previous close of 75.66, the rupee swung between gains and losses within a range of 75.56-75.74 amid strength in domestic equity markets.
The rupee shut shop for the day down 5 paise against the American currency.
Domestic equity markets soared more than 3 per cent as value investors stepped in to buy beaten-down banking stocks.
The S&P BSE Sensex index ended 995.92 points higher at 31,605.22 and the broader NSE Nifty 50 benchmark settled at 9,314.95, up 285.90 points from the previous close.
“Asian equity indices have slipped in the red, ignoring the big risk on surge overnight in the European and US stock markets. One can reason can be the growing tensions between China and US,” brokerage Kotak Securities said in a note.
Crude oil prices fell after US President Donald Trump said he was working on a strong response to China’s proposed security law in Hong Kong. Brent crude – the global benchmark for crude oil tumbled 2.5 per cent to $35.27 per barrel.
A potential deterioration in relations between the world’s two biggest economies could ratchet up the pressure on global businesses and oil demand already weakened by the coronavirus pandemic.
“On the forex front, a basket of four pairs, with whom the USD-INR pair enjoys a high positive correlation – USD/MYR, USD/SGD, USD/KRW and USD/CNH is in a congestion zone,” Kotak Securities said.
The dollar index – which gauges the greenback against six currencies – was last seen trading 0.38 per cent higher, having jumped as much as 0.44 per cent earlier.
“Aggravating relations between the world’s two biggest economies could further impact global growth negatively in the coming future,” said Amit Pabari, managing director at forex advisory firm CR Forex Advisors.
