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Rupee Gains Still Near 6-Week Low Amid Rising COVID-19 Cases

Rupee Near 6-Week Low But Moves Marginally Higher Against Dollar

Rupee Vs Dollar: The rupee gained to as high as 76.14 against the dollar during the session

Rupee Vs Dollar Today: The rupee edged higher by 7 paise – or 0.09 per cent – to touch the 76.14 mark against the US dollar on Wednesday, but still near a six-week low registered the previous day. The rupee moved in a range of 76.14-76.26 in the first half of the four-hour session, having started the day unchanged from its previous close of 76.21. At noon, it was seen trading at 76.18 against the greenback. Analysts say the rupee is expected to continue to trade in a narrow range in the near term. 

Domestic equity markets inched lower in early trade on Wednesday as escalating border tensions with China, and a spike in coronavirus cases both at home and abroad kept investors from making bold bets.

The S&P BSE Sensex index fell as much as 0.81 per cent – or 272.26 points – to hit 33,332.96 on the downside, and the broader 50-scrip NSE Nifty benchmark slid to as low as 9,833.80 compared to its previous close of 9,914.00.

Late on Tuesday, the Indian army said 20 of its soldiers had been killed in clashes with Chinese troops at Galwan Valley in Ladakh.

“Geopolitical risk premium is not something rupee is used to,” brokerage Kotak Securities said in a note. However, the stand-off between Indian and Chinese forces is adding to that risk premium, it added.

The dollar index – which gauges the greenback’s performance against six currencies – was last seen trading flat, having risen 0.14 per cent earlier.

Meanwhile, international crude oil prices retreated on Wednesday, weighed down by an increase in US crude inventories and worries about a potential second wave of the coronavirus pandemic. Brent crude futures – the global benchmark for crude oil – were last seen trading 1.0 per cent lower at $40.56 per barrel.

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 Tuesday’s close of 76.21, the rupee is down 6.80 per cent against the dollar so far this year.

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