Rupee slips 8 paise to 75.74 in early trade, forex traders concerned about rising US-China tensions

The rupee depreciated 8 paise to 75.74 against the US dollar in opening trade on Wednesday as market participants were concerned about rising tensions between Washington and Beijing in the wake of the coronavirus pandemic

Press Trust of India May 27, 2020 11:13:39 IST
Rupee slips 8 paise to 75.74 in early trade, forex traders concerned about rising US-China tensions

Mumbai: The rupee depreciated 8 paise to 75.74 against the US dollar in opening trade on Wednesday as market participants were concerned about rising tensions between Washington and Beijing in the wake of the coronavirus pandemic.

Forex traders said the rupee was trading in a narrow range as rising optimism about a potential coronavirus vaccine and a revival in business activity was offset by the escalation of US-China tension.

Moreover, strengthening of the American currency overseas and muted opening of domestic equities also weighed on the local unit.

The rupee opened weak at 75.72 at the interbank forex market and then fell further to 75.74, down 8 paise over its last close.

It had settled at 75.66 against the US dollar on Tuesday.

Click here to follow LIVE news and updates on stock markets

"Asian currencies were weak this Wednesday morning amid an escalation of tension between the US and China. Offshore yuan was weak by 0.3 percent and Korean won also weak by 0.3 percent," Reliance Securities said in a research note.

China on Friday introduced the draft of a controversial national security law in Hong Kong in its parliament to tighten Beijing's control over Hong Kong.

The US, over the last few days, has expressed concerns over the new Chinese law on Hong Kong and has given an indication of taking steps against it.

"He (US President Donald Trump) is displeased with China's efforts and that it''s hard to see how Hong Kong can remain a financial hub if China takes over," White House Press Secretary Kayleigh McEnany told reporters at a news conference on Tuesday.

Meanwhile, in India, the death toll due to COVID-19 rose to 4,337 and the number of cases climbed to over 1.51 lakh in the country, according to the Health Ministry.

Click here to follow LIVE updates on coronavirus outbreak

The number of cases around the world linked to the disease has crossed over 55.91 lakh and the death toll has topped 3.50 lakh.

The 30-share benchmark index, Sensex was quoting 10.07 points higher at 30,619.37 and broader Nifty rose 28.55 points to 9,057.60.

Foreign institutional investors were net buyers in the capital market, as they bought equity shares worth Rs 4,716.13 crore on Tuesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, fell 0.22 percent to $36.09 per barrel.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.25 percent to 99.15.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

COVID-19 cases in India cross 8.5 lakh; Pune, Bengaluru prep for lockdown, Mumbai's doubling rate rises to 50 days
India

COVID-19 cases in India cross 8.5 lakh; Pune, Bengaluru prep for lockdown, Mumbai's doubling rate rises to 50 days

Across the country, authorities are preparing to reimpose lockdown restrictions for varying periods in more cities. In Pune and Bengaluru, the seven- and 10-day lockdown respectively, will begin from Tuesday.

Cameron Champ can play under PGA Tour's latest coronavirus policy change, added to Rocket Mortgage Classic field
Sports

Cameron Champ can play under PGA Tour's latest coronavirus policy change, added to Rocket Mortgage Classic field

Champ tested positive on 23 June and withdrew from the Travelers Championship. The tour said he had three negative tests over the 72 hours. He still had to be tested at Detroit Golf Club upon arrival.

Cancer-stricken former boxer Dingko Singh recovers from COVID-19, placed under home isolation in Imphal
Sports

Cancer-stricken former boxer Dingko Singh recovers from COVID-19, placed under home isolation in Imphal

Having recovered from the extremely contagious disease after a month-long battle, Asian Games gold-winning former boxer Dingko Singh will be isolated at his Imphal residence for a fortnight.