This Article is From Jun 12, 2020

Rupee Slides Below 76 Mark Against Dollar Amid COVID-19 Fears

The rupee moved in a range of 75.95-76.10 in the first half of the four-hour session, soon returning to 75 levels against the greenback

Rupee Vs Dollar: The rupee is down 6.19% against the dollar so far this year

Rupee Vs Dollar Today: The rupee weakened by 32 paise - or 0.43 per cent - to briefly trade below the 76 mark against the US dollar on Friday amid weakness across Asian currencies, as fears about a second wave of COVID-19 infections spooked global financial markets. The rupee moved in a range of 75.95-76.10 in the first half of the four-hour session, soon returning to 75 levels against the greenback after starting the day at the weakest level of the day. It was last seen trading down 0.19 per cent at 75.93 against the US currency.

Domestic stock markets registered sharp losses amid rising cases of the COVID-19 disease, as global equities tumbled over growing concerns that a resurgence of infections could stunt the pace of reopening economies. A selloff across sectors - led by financial stocks, especially state-run banks - weighed on the benchmark indices.

The S&P BSE Sensex index fell as much as 3.55 per cent - or 1,190.27 points - to hit 32,348.10, and the broader NSE Nifty 50 benchmark dropped to as low as 9,544.35, having started the day down 3 per cent at 9,544.95.

Analysts awaited macroeconomic data due later in the day for more clarity on the economic fallout from the coronavirus pandemic.

Official data on consumer inflation as well as industrial production will be released at 5:30 pm. Consumer inflation - or the rate of increase in retail prices determined by the Consumer Price Index (CPI) - is likely to have moderated to a six-month low of 5.50 per cent in May, according to a poll of 35 economists by news agency Reuters.

Crude oil prices fell, extending heavy overnight losses as a surge in US coronavirus cases this week raised the prospect of a second wave of the COVID-19 outbreak hitting demand in the world's biggest consumer of crude and fuel.

Brent crude futures - the global benchmark for crude oil - were last seen trading 1.5 per cent at $37.97 per barrel, having dropped nearly 8 per cent the previous day.

The dollar index - which gauges the greenback's performance against six currencies - climbed up as much as 0.21 per cent, and was last seen trading up 0.10 per cent.

Analysts say the rupee is expected to remain in a narrow range in the near term on account of weakness in domestic equities and sustained foreign fund outflows..

Currency markets currently operate within reduced trading hours due to the coronavirus-induced lockdown. The temporary timings are from 10 am to 2 pm, instead of the normal timings of 9 am to 5 pm.

At Thursday's closing level of 75.78, the rupee is down 6.19 per cent against the dollar so far this year.