Markets

Rupee slides 34 paise to over 3-month low of 71.98 against U.S. dollar

Representational image. File

Representational image. File   | Photo Credit: Getty Images/iStockphoto

Forex traders said investor sentiment remained fragile amid concerns over the impact of the COVID-19 outbreak on the global economy

The rupee on Monday fell by 34 paise to close at a more than three-month low of 71.98 (provisional) against the U.S. dollar, tracking heavy selling in domestic equities and strengthening of the American currency in the overseas market.

Forex traders said investor sentiment remained fragile amid concerns over the impact of the COVID-19 outbreak on the global economy.

The death toll due to the virus climbed to 2,592 with 150 new fatalities, while the total number of confirmed cases increased to over 77,000, Chinese health officials said on Monday.

However, easing crude oil prices supported the local unit and restricted the fall to some extent.

At the interbank foreign exchange market, the local currency opened on a negative note at 71.94. During the day, the domestic currency touched a high of 71.76 and a low of 72.01 and finally settled 34 paise lower at 71.98 against the U.S. currency. This is the lowest closing level since November 13, when the rupee had settled at 72.09.

Financial markets remained closed on Friday on the account of Mahashivratri.

Indian stock markets closed with deep losses following a massive sell-offs in global equities as spike in new COVID-19 cases beyond China spooked investors. Equity benchmark Sensex plunging about 807 points or 1.96% and the broader Nifty tanking more than 2%.

“In line with other Asian currencies, the rupee declined amid concern over the COVID-19 outbreak, which is threatening to damage the global economy,” said V.K. Sharma, head PCG and Capital Markets Strategy, HDFC Securities.

“Indian rupee is likely to stay under pressure in the next few days amid month-end dollar demand and risk off sentiments. Spot USDINR is having multiple top resistance at 72.15 and support at 71.32,” he added.

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Printable version | Apr 4, 2020 8:44:44 AM | https://www.thehindu.com/business/markets/rupee-slides-34-paise-to-over-3-month-low-of-7198-against-us-dollar/article30904201.ece

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