Rupee recovered by 10 paise to close at 75 against US currency
Reportedly the rupee on tuesday recovered by 10 paise to close at 75.63 against the US currency on increased risk appetite following easing Sino-US trade war concerns. The US dollar declined against major Asian currencies and the euro after a US official said that the country was not planning any punitive action against china over the handling of the coronavirus pandemic.
Forex traders said the rupee is trading in a narrow range as sustained foreign fund outflows and concerns over coronavirus outbreak weighed on the local unit. At the interbank foreign exchange, the rupee opened at 75.62 and finally settled at 75.63, registering a rise of 10 paise over its previous close. During the day the domestic unit saw an intra-day high of 75.50 and a low of 75.72 against the US dollar. On monday, the rupee had settled at 75.73 against the US dollar. Domestic stocks advanced in early trade with the benchmark Sensex trading 85.45 points higher at 31,800.80 and broader Nifty 15.30 points at 9,308.80.
Later, stocks gave up gains and BSE index settled 261.84 points or 0.83 per cent lower at 31,453.51, and the NSE Nifty fell 87.90 points or 0.95 per cent to close at 9,205.60. Forex traders said the rupee would remain an interplay between COVID-19 situation and the Sino-US tensions. Moreover US has threatened to impose higher tariffs to penalize china and even warned of stringent action. As long as this kind of rhetoric continues to dominate the headlines, Asian currencies, along with Chinese Yuan can depreciate against US Dollar," said Anindya Banerjee, DVP, currency Derivatives & Interest Rate Derivatives at Kotak Securities. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.26 per cent up at 99.74.