Rupee logs first gain in four sessions, rises 12 paise to close at 71.31 amid easing crude prices
The Indian rupee on Tuesday appreciated by 10 paise to end at 71.33 against the US dollar as crude prices eased following concerns that oil demand will be hit amid rapid spread of coronavirus from China to other countries
Forex traders said rupee is trading in a narrow range amid intensifying coronavirus scare
Moreover, heavy selling in domestic equities and strengthening of the American currency weighed on the domestic unit
However, easing crude oil prices supported the rupee
Mumbai: The rupee clocked its first gain after three days of losses on Tuesday, recovering by 12 paise to close at 71.31 against the US dollar, even as concerns remained over fast-spreading coronavirus from China to other regions.
The domestic unit's rise was restricted by a host of factors like subdued equities, stronger dollar against key currencies and sustained foreign fund outflows, according to analysts.
At the interbank foreign exchange market, the local currency opened at 71.37. During the day, the local unit saw a high of 71.26 and a low of 71.41. The domestic unit finally settled at 71.31, up 12 paise from its previous close.
The rupee had settled at 71.43 against the American currency on Monday.
Meanwhile, the global crude benchmark Brent Futures rose 0.39 percent to trade at $58.81 per barrel.
While, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.05 percent to 98.00.
The 10-year Indian government bond yield was at 6.58 percent.
Broadly, crude prices have seen some moderation in the past few sessions over demand slump amid rising coronavirus cases in China and other regions.
The death toll from a coronavirus outbreak in China has soared to 106, while nearly 1,300 new cases have been confirmed, according to reports.
By the end of Monday, a total of 4,515 cumulative confirmed cases of the new pneumonia had been reported in Hubei, while 2,567 patients are hospitalised, with 563 in severe conditions and 127 in critical conditions, the Hubei Provincial Health Commission said on Tuesday.
On the domestic equity market front, the 30-share BSE index settled 188.26 points, or 0.46 percent, down at 40,966.86. Likewise, the broader NSE Nifty closed 63.20 points, or 0.52 percent, down at 12,055.80.
Foreign institutional investors sold equities worth Rs 1,357.56 crore on a net basis on Tuesday, according to provisional exchange data.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.3948 and for rupee/euro at 78.7290. The reference rate for rupee/British pound was fixed at 93.2473 and for rupee/100 Japanese yen at 65.46.
He also questioned the government for 'backsliding' on the fiscal deficit target for the current year
At the interbank foreign exchange, the rupee opened at 78.26 against the American dollar, then inched higher to quote at 78.23, registering a rise of 9 paise from the previous close
The Federal Reserve interest hike of 75 bps could trigger a churn in equity markets, cool off investor enthusiasm and further weaken the Indian currency against the Greenback