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COVID-19 Crisis: Rupee Falls By 30 Paise To End Near Record Low Against Dollar
21 Apr 2020, 05:41 PM IST 
At the current level, the rupee is down 7.61% against the dollar so far this year
- The rupee ended at 77.83 against the dollar on Tuesday, four paise - or 0.05 per cent - away from its lifetime low.
- WTI crude for May delivery was last seen trading at minus $7 per barrel, up $30.63 from the previous close, while Brent crude (June delivery) - the global benchmark - was down 21 per cent at $20.32 per barrel.
- Analysts say the rupee is expected to remain under pressure in the near term on account of the economic fallout from the coronavirus (COVID-19) pandemic and foreign outflows in the domestic equity markets.
- "In spite of the historical collapse in crude oil prices, rupee could not benefit and has still continued on the downwards trajectory," said Sugandha Sachdeva, VP-metals, energy and currency research at Religare Broking.
- The dollar index - which gauges the greenback against six major peers overseas - picked up as much as 0.42 per cent on Tuesday, and was last seen trading up 0.37 per cent. "As of now, renewed strength in the dollar index is further weighing on the local unit," Ms Sachdeva added.
- Domestic share markets plunged as much as 4 per cent on Tuesday amid a selloff across sectors before trimming some of those losses, as a historic plunge in US oil prices due to a collapse in demand underscored the coronavirus pandemic's threat to the global economy. The NSE Nifty 50 index closed 3.03 per cent lower at 8,981.45, while the leaner S&P BSE Sensex benchmark ended down 3.2 per cent at 30,636.71.
- Foreign institutional investors (FIIs) have net sold Indian equities worth Rs 4,682.31 crore ($618.03 million) so far this month, data from NSDL shows.
- "In the current landscape, once we see a break past 77 mark, the level of 77.50 looks quite likely on the cards," adds Ms Sachdeva, who views 75.20-75.30 as most optimistic levels expected in the rupee in the near term.
- At Tuesday's closing price, the rupee is down 7.61 per cent (547 paise) against the dollar so far this year.
- Earlier this month, the Reserve Bank of India (RBI) trimmed the timings of currency markets in view of the coronavirus-induced lockdown imposed by the government to curb the spread of the pandemic. Currency markets will continue to trade from 10:00 am to 2:00 pm till April 17, in a shift from the normal timings of 9:00 am-5:00 pm.