This Article is From Aug 04, 2020

Rupee Closes Nearly Unchanged At 75.04 Against Dollar

INR Vs USD: The rupee moved within a range of 74.99-75.18 against the dollar during the four-hour session, before shutting shop at 75.04.

Rupee Closes Nearly Unchanged At 75.04 Against Dollar

Rupee Vs Dollar: The rupee has recovered 2.43% from an all-time low of 76.91 logged in April

INR Vs USD: The rupee moved in a narrow range of 19 paise against the US dollar to close marginally lower for the day at 75.04, amid weakness across most Asian currencies. It moved within 74.99 and 75.18 against the greenback during the four-hour session, having started the day weaker at 75.15 compared to its previous close of 75.01. Analysts say weakness in the dollar overseas and sharp gains in domestic equities kept the losses in check.

Domestic stock markets jumped nearly 2 per cent with benchmark indices S&P BSE Sensex and NSE Nifty 50 on course to finish higher after four days of losses, boosted by a jump in heavyweight HDFC Bank.

Crude oil prices eased amid concerns that a fresh wave of COVID-19 infections around the world will see a pickup in fuel demand stalling amid tighter lockdowns - just as major producers ramp up output. Brent crude futures - the global benchmark for crude oil - were last seen trading 0.30 per cent lower at $44.04 per barrel.

The dollar index - which measures the US currency against six peers - fluctuated between marginal gains and losses, and was last seen trading 0.15 per cent lower.

"Domestic sentiments have remained supportive as no news is considered good news at present. However, with the rebound in the dollar index and a decline in regional peers, the rupee is likely to follow the trend of emerging currencies and trade weaker," said Amit Pabari, managing director at forex advisory firm CR Forex.

"August seasonality seems to be weighing on the rupee, and if the USD-INR pair sustains above 75.00, there is a higher possibility of it to test 75.30-75.50 levels in the current month," he added.

At the current level, the rupee has recovered 2.43 per cent against the American currency since an all-time low of 76.91 registered in April, but is still down 5.16 per cent so far this year.