Rupee Edges Lower To 75.57 Against Dollar

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Rupee Vs Dollar Today: The rupee weakened by as many as 7 paise – or 0.09 per cent – to the 75.57 mark against the US dollar in early trade on Wednesday, amid a mixed trend in Asian currencies. After starting the day nearly unchanged at 75.52 against the US currency, the rupee moved between 75.48 and 75.57 in the first hour of the four-hour session, compared to its previous close of 75.50. While mild gains in domestic equity markets supported the rupee, strength in the dollar overseas kept the upside in check, say analysts.

Domestic stock markets inched higher as investor optimism was boosted by strong factory data out of China, offsetting fears of rising coronavirus cases, with Bharti Airtel leading small gains after a deal with US-based Carlyle. The S&P BSE Sensex index rose as much as 0.62 per cent – or 216.48 points – to 35,132.28, and the broader NSE Nifty 50 benchmark climbed to as high as 10,355.85 following a mildly strong opening.

The dollar index – which measures the dollar against six currencies – was last seen trading 0.06 per cent higher, having risen as much as 0.09 per cent earlier.

Analysts expect the rupee to continue to move sideways in the near term.

“The rupee is back in the familiar trading range of 75.40-75.95 that prevailed for a long time just prior to the spike above 76 on India-China border tensions,” said Abhishek Goenka, founder and CEO of forex advisory firm IFA Global.

“Today is the exchange-traded currency derivative expiry for June. Month-end exporter selling would likely cap the upside. Asian currencies are stronger against the dollar,” he added.

Meanwhile, international oil prices rose on Friday, extending gains on optimism about a recovery in fuel demand worldwide, despite a surge in coronavirus infections in some US states and signs of a revival in US crude production. Brent crude futures – the global benchmark for crude oil – rose 1.6 per cent to $41.69 per barrel, and were headed for a mild weekly loss.

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 Thursday’s close, the rupee is down 6.03 per cent against the US currency so far this year.



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