Rupee recovers after hitting fresh lows

Weak dollar, rising indices aid currency

April 22, 2020 10:25 pm | Updated 10:25 pm IST - Mumbai

The rupee hit a fresh low on Wednesday but recovered later, supported by a rise in domestic equities and some weakness in the dollar.

The rupee opened weaker at 76.90 a dollar compared with the previous close of 76.83 and then touched an all-time low of 76.92. The previous all-time low was reached earlier this month when the rupee touched 76.87 to a dollar.

The rupee finally closed the day at 76.68, up 15 paise from the previous close.

The Sensex closed up 742.84 points, or 2.42% higher, compared with the previous close. Currency dealers said there would be pressure on the rupee going forward as the domestic unit should breach the 77-a-dollar mark in the near term

“Despite some gains in today’s session, the sentiment still remains skewed on the downside as the global economy is reeling under the impact of COVID-19 and there is no end in sight to this pandemic.

“In case the level of 77 is taken out, then rupee looks to quickly resume a downhill move towards the 77.50 mark. On the flip side, the zone of 75.30-75.20 will act as a strong hurdle for the domestic currency,” said Sugandha Sachdeva, analyst, Religare Broking.

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