Rupee Vs Dollar Rate Today: The rupee declined by 33 paise – or 0.44 per cent – from its previous close to hit the 75.32 mark against the US dollar on Friday. After starting the day weaker at 75.14 compared to its previous close of 74.99, the rupee moved in a range of 18 paise between 75.14 and 75.32 during the four-hour session. It was last seen trading down 0.37 per cent at 75.27 against the greenback. Analysts say increased demand for dollars among banks and importers and strength in the US currency overseas put pressure on the rupee.
Besides, losses in domestic equity markets also hurt sentiment in the forex markets.
Equity benchmarks Sensex and Nifty fell as a relentless surge in domestic COVID-19 cases dashed hopes of a quick recovery in an already-slowing economy battered by the pandemic.
The Sensex index declined as much as 0.92 per cent – or 336.58 points – to 36,401.11 during the session, whereas the broader Nifty benchmark slid to as low as 10,713.00, having started the session weaker at 10,764.10 compared to its previous close of 10,813.45.
The dollar index, which gauges the dollar against six currencies, was last seen trading 0.12 per cent higher, having risen as much as 0.28 per cent earlier on Friday. Most Asian currencies moved lower against the greenback.
While the Japanese yen was up 0.34 per cent against the dollar at the time, the Singaporean dollar was down 0.09 per cent, the Taiwanese dollar down 0.27 per cent, the Chinese yuan down 0.19 per cent, the Thai baht down 0.14 per cent and the South Korean won down 0.73 per cent.
“Any negative reaction of markets coming from COVID-19-related news could be short lived. On the other hand, India is considering raising nearly $2.7 billion by selling stake in the world’s largest coal producer and IDBI Bank to fund its stimulus program. This will remain supportive for the rupee and could avoid any sharp depreciation in the (USD-INR) pair,” said Amit Pabari, managing director, CR Forex Advisors, a forex advisory firm.
“The pair is expected to trade within 74.50-75.50 levels for the next few sessions,” he said.
Crude oil prices extended losses to a second straight session, and were headed for a weekly decline on worries that renewed lockdowns following a surge in coronavirus cases in the US and elsewhere could suppress fuel demand.
Brent crude futures – the global benchmark for crude oil – were last seen trading down 1.70 per cent at $41.62 per barrel, following a fall of more than 2 per cent on Thursday.
Global oil rates have regained some ground from March lows as the easing of restrictions on transport and industrial activity to curb the spread of the coronavirus pandemic boosted fuel demand around the globe. Brent crude futures had hit a 21-year low of $15.98 per barrel in April.
Meanwhile, foreign portfolio investors (FPIs) net purchased Indian equities worth Rs 212.77 crore on Thursday, whereas domestic institutional investors net sold shares worth Rs 803.39 crore, NSE data showed.