Rupee Drops To End At 75.73 Against Dollar Amid COVID-19 Lockdown
Rupee vs Dollar Today: The rupee declined by as much as 22 paise - or 0.29 per cent - to 75.77 against the US dollar on Monday, as the country remained in the third phase of an extended lockdown to curb the spread of the coronavirus (COVID-19) pandemic. After starting the session flat at 75.55, the rupee moved in a range of 75.54-75.77 during the day before settling at 75.73 against the greenback. Strength in the US dollar overseas along with lacklustre trade in the domestic equity markets put pressure on the rupee, say analysts.
Domestic stock markets rose more than 2 per cent before erasing all of the day's gains by the end of the session, as selling pressure in financial stocks outweighed buying interest in automobile shares.
The S&P BSE Sensex index ended 81.48 points - 0.26 per cent - lower at 31,561.22 whereas the broader NSE Nifty 50 benchmark settled at 9,239.20, down 12.30 points - or 0.13 per cent - compared to the previous close.
The dollar index - which gauges the American currency against six major peers overseas - jumped as much as 0.35 per cent on Monday, and was last seen trading up 0.23 per cent.
Crude oil prices moved lower as a new wave of coronavirus infections in some countries and concern over a persistent glut cancelled out support from supply cuts by the world's top producers.
Brent crude futures - the global benchmark for crude oil - were last seen down 3.6 per cent at $29.86 per barrel.
Meanwhile, foreign institutional investors (FIIs) were net buyers in the Indian capital market, net purchasing equities worth Rs 1,724.71 crore on Friday, provisional exchange data shows.
Analysts say the rupee is expected to move sideways in the short term.
"On the back of positive sentiments, if inflows in the equity continue to pour, it will prevent any sharp depreciation in the rupee in the near term," said Amit Pabari, managing director at forex advisory firm CR Forex Advisors.
"The (INR-USD) pair has formed its near-term range within 74.85-75.85 levels," he added.
At the current level, the rupee is down 6.12 per cent against the dollar so far this year.
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.