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Rupee Erases Gains To End At 76.21 Vs Dollar Amid COVID-19

Rupee Erases Day's Gains To End Lower At 76.21 Against Dollar

Rupee Vs Dollar: The rupee gained to as high as 75.85 against the dollar during the session

Rupee Vs Dollar Today: The rupee ended a volatile session on Tuesday to return to 76 levels against the US dollar despite gains in Asian currencies. The rupee added 26 paise – or 0.34 per cent – to touch 75.77 at the strongest level during the day, after the formal start of the US central bank’s corporate bond buying programme boosted hopes of liquidity in domestic markets and outweighed concerns about another round of lockdowns in the face of rising COVID-19 cases. The currency however succumbed to the negative territory in the second half of the session In the first half of the four-hour session, sliding to as low as 76.29 against the greenback, before shutting shop at 76.21 for the day. 

Domestic stock markets started Tuesday’s session on a sharply positive note tracking gains in global equities. The S&P BSE Sensex climbed up as much as 2.39 per cent – or 793.21 points – to touch 34,022.01 in early trade, having started the day up 624.92 points at 33,853.72. The broader NSE Nifty 50 benchmark rose to as high as 10,046.15, after registering a gap-up opening above the 10,000 mark compared to its previous close of 9,813.70.

Gains across sectors – led by financial and metal stocks – pushed the markets higher.

International crude oil prices erased early gains amid persistent doubts over whether supply cuts would be enough to reduce an oil glut. Brent crude futures – the global benchmark for crude oil – were last seen trading down 1.2 per cent at $39.23 per barrel.

Analysts say the rupee is expected to continue to trade in a narrow range in the near term.

“We may see nationalised banks support the pair by buying dollars on behalf of the central bank,” said Abhishek Goenka, founder and CEO of forex advisory firm IFA Global. “Asian currencies are stronger against the dollar,” he said.

The dollar index – which measures the greenback against six peers – was last seen trading 0.19 per cent lower, having declined as much as 0.27 per cent earlier.

While the Chinese yuan was up 0.24 per cent against the dollar at the time, Taiwan’s dollar was up 0.32 per cent. The Japanese yen – part of the dollar index – was down 0.16 per cent, while the Singapore dollar was up 0.19 per cent. 

Indian currency markets currently operate within reduced trading hours due to the coronavirus-induced lockdown. The temporary timings are from 10 am to 2 pm, instead of the normal timings of 9 am to 5 pm.

At the current level, the rupee is down 6.80 per cent against the dollar so far this year.

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