Markets

Rupee settles 9 paise lower at 75.60 against US dollar

The rupee on Wednesday settled 9 paise lower at 75.60 (provisional) against the US dollar as concerns over rising COVID-19 cases weighed on investor sentiment even as the domestic equity market was trading in the positive territory.

At the interbank forex market, the rupee opened at 75.49 against the US dollar, but lost ground and ended the day at 75.60 against the US dollar, down 9 paise over its last close.

It had settled at 75.51 against the US dollar on Tuesday.

During the four-hour trading session, the rupee witnessed an intra-day high of 75.48 and a low of 75.60 against the US dollar.

Forex traders said firm domestic equities supported the local unit, while foreign fund outflows and rising COVID-19 cases weighed on investor sentiments.

“The mixed risk sentiments are leading to a very lacklustre trading in the forex market. Traders are unaware of which direction will the USD/INR spot trade and are looking for more cues,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

Mr. Gupta further added that “the good news of economic recovery has been factored in so any disappointment over coronavirus or US-China trade war will hamper the market sentiments.”

Meanwhile, the number of cases around the world linked to the disease has crossed 1.04 crore and the death toll has topped 5.11 lakh.

In India, the death toll due to COVID-19 rose to 17,400 and the number of infections rose to 5,85,493, according to the health ministry.

Brent crude futures, the global oil benchmark, rose 2.64 per cent to USD 42.36 per barrel.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell by 0.14 per cent to 97.25.

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Printable version | Jul 6, 2020 8:59:01 AM | https://www.thehindu.com/business/markets/rupee-settles-9-paise-lower-at-7560-against-us-dollar/article31961543.ece

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