Rupee drops by 8 paise to fresh record low of 75.20 amid economic uncertainties over fast-spreading coronavirus
The rupee gave up its day's gains to settle 8 paise lower at a fresh life-time low of 75.20 against the US dollar on Friday as forex market continued to grapple with economic uncertainties due to fast-spreading coronavirus pandemic
Mumbai: The rupee gave up its day's gains to settle 8 paise lower at a fresh life-time low of 75.20 against the US dollar on Friday as forex market continued to grapple with economic uncertainties due to fast-spreading coronavirus pandemic.
At the interbank foreign exchange market, the domestic currency opened higher at 74.82 and gained more strength as the day progressed.
It went on to hit a high of 74.72 before succumbing to weakening sentiments due to the virus scare.
The Indian unit finally settled at 75.20, down 8 paise against the US dollar.
"The progression of fast-spreading coronavirus pandemic has created havoc ... This uncertainty and hysteria have grappled the forex market, depreciating all emerging market currencies and taking rupee to record low of 75.30 zone," Rahul Gupta, Head of Research - Currency, Emkay Global Financial Services, said.
Globally, all central banks including RBI are trying to reduce the risk and loosen the tight liquidity however the increasing number of coronavirus cases in India will keep the rupee on an edge, he said.
The dollar index, which gauges the greenback''s strength against a basket of six currencies, was down 0.79 percent to 101.95, helping the rupee trade higher.
The domestic unit had closed at 75.12 against the US currency on Thursday.
On the equity front, The BSE Sensex ended 1,627.73 points or 5.75 percent higher at 29,915.96.
Similarly, the NSE Nifty zoomed 482 points, or 5.83 percent, to close at 8,745.45.
Investors continued to assess the impact of Covid-19 on the economy, impacting the trading sentiment on bourses.
According to the Health Ministry, the novel coronavirus cases in India rose over 200 on Friday.
Foreign investors remained net sellers in Indian capital markets as they pulled out more than Rs 4,622.93 crore on Thursday, market data showed.
Brent crude futures, the global oil benchmark, rose 2.46 percent to $29.17 per barrel.
The most-traded 10-year government bond yield was at 6.25.
India records 11,793 new COVID-19 infections, 27 deaths in last 24 hours; active case count rises to 96,700
According to health ministry, 9,486 patients recuperated from coronavirus in the last 24 hours, increasing the total recoveries to 4,27,97,092. The national recovery rate currently stands at 98.57 per cent
India now has 83,990 active infections of COVID-19. There has been increase of 2,303 cases in just 24 hours and the active caseload now stands at 0.19 per cent of total cases
At Wimbledon, All England Club is following British government guidance that requires neither shots nor testing, three of the top-20 seeded men have withdrawn.