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Rupee Breaches 73/Dollar Mark, Falls To Over 15 Month Low Amid Virus Scare

Rupee closed at 73.29, down 56 paise on Tuesday
Rupee closed at 73.29, down 56 paise on Tuesday

The rupee on Tuesday extended its poor run as it fell below the psychological mark of 73 against the US dollar. The local unit closed at 73.29, down 56 paise, from its yesterday's closing figure. As the uncertainty over coronavirus spooked investors, the domestic currency has now slipped to its lowest levels in more than 15 months. Tuesday was the third consecutive session of fall for the home unit during which it has depreciated by 160 paise.

The currency markets witnessed significant volatility during the day's trade. At the interbank foreign exchange market, the local currency opened at 72.50. During the day, it saw a high of 72.43 and a low of 73.34 against the greenback.

"Rupee fell to the lowest level in a year following an increase in number of reported cases on coronavirus in India. Market participants will be keeping an eye on the expected synchronised move from Central banks and that could trigger a move for the greenback," news agency PTI quoted Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services, as saying. Somaiyaa further added that the rupee (spot) is expected to quote with a negative bias and in the range of 72.80 and 73.50.

The Reserve Bank of India (RBI) meanwhile, released a statement on Tuesday saying that it is monitoring the impact of coronavirus and is ready to take necessary action to ensure orderly functioning of financial markets.

Contrary to the currency markets, there was reason to cheer as far as the equities are concerned. Sensex and Nifty gained 1.30 per cent and 1.50 per cent respectively, snapping their seven-day losing streak, led by gains in metal, healthcare, energy and power shares.