Rupee Edges Lower To 75.57 Against Dollar

At Tuesday's close, the rupee is down 5.80 per cent against the greenback so far this year.

Rupee Edges Lower To 75.57 Against Dollar

Rupee Vs Dollar: The rupee weakened to as low as 75.57 against the dollar during the session

Rupee Vs Dollar Today: The rupee weakened by as many as 7 paise - or 0.09 per cent - to the 75.57 mark against the US dollar in early trade on Wednesday, amid a mixed trend in Asian currencies. After starting the day nearly unchanged at 75.52 against the US currency, the rupee moved between 75.48 and 75.57 in the first half of the four-hour session, compared to its previous close of 75.50. Strength in the dollar overseas put pressure on the rupee however mild gains in domestic equity markets limited the fall, say analysts.

Domestic stock markets inched higher as investor optimism was boosted by strong factory data out of China, offsetting fears of rising coronavirus cases, with Bharti Airtel leading small gains after a deal with US-based Carlyle. The S&P BSE Sensex index rose as much as 0.62 per cent - or 216.48 points - to 35,132.28, and the broader NSE Nifty 50 benchmark climbed to as high as 10,355.85 following a mildly strong opening.

The dollar index - which measures the dollar against six currencies - was last seen trading 0.06 per cent higher, having risen as much as 0.09 per cent earlier.

While the Japanese yen traded 0.27 per cent higher and the Taiwanese dollar was up 0.31 per cent, the Singaporean dollar was down 0.06 per cent, the Chinese yuan was down 0.04 per cent, the South Korean won down 0.12 per cent and the Thai baht down 0.16 per cent.

Analysts expect the rupee to continue to move sideways in the near term.

"Currently, with a favourable outlook for the rupee coupled with risk-on mood, the rupee will remain well-supported in the near term. The extent of strength in the rupee will depend upon how far the Reserve Bank of India will allow it to appreciate, said Amit Pabari, managing director, CR Forex Advisors.

"The (USD-INR) pair is likely to remain within its range of 75.00-76.20 levels for few more trading sessions," he said. 

Meanwhile, crude oil prices rose more than 1 per cent on Wednesday after data showed inventories in the US declined much more than expected, suggesting demand is improving even as the coronavirus outbreak spreads around the world.

Brent crude futures - the global benchmark for crude oil - were last up 1.2 per cent at $41.75 per barrel.

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 Tuesday's close, the rupee is down 5.80 per cent against the greenback so far this year.