Rupee slips as investors flock to safe havens

Falling oil futures strengthen dollar

April 21, 2020 10:30 pm | Updated 10:30 pm IST - Mumbai

The rupee slipped 30 paise against the dollar on Tuesday with greenback strengthening against major currencies. Investors flocked to safe havens following uncertainties about the global economy after U.S. crude oil futures slipped into negative zone for the first time in history.

The domestic currency opened weaker at 76.74 to a dollar compared with the previous close of 76.53. The currency weakened further to 76.85 a dollar but then, it was able to cut some losses during intraday deals when it hit 76.61. However, it slipped again in the closing hours as it ended the day at 76.83, down 0.4% from its previous close. The all-time low for the currency was 76.87 a dollar which it touched earlier this month.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.25% to 100.2.

“The rupee witnessed a strong fallout again, due to likely overseas outflows from local stocks amid oil importers’ dollar demand and a strong greenback,” said Jateen Trivedi, senior research analyst (commodity and currency), LKP Securities.

“Adding fuel to the already weak sentiment, U.S. President Donald Trump’s announcement that he would sign an executive order to temporarily suspend immigration into U.S. also weighed down,” he said.

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