Rupee falls to record low against US dollar, then recovers

The Indian Rupee these days fell to a new document low against the US dollar, despite durable traction in domestic fairness markers. The Rupee today opened at 76.09 before pushing to a record low of 76.55 towards the US dollar. The Rupee had settled at 76.34 against the US dollar in the other session. However, in late trade, the Rupee recovered to 76.25 a dollar. Traders stated investor sentiments stay fragile amid concerns over the have an impact on of coronavirus outbreak on the home as well as the international market.

In India, over 5,700 coronavirus cases have stated, so a long way while globally the range has surged above 15 lakh. The Sensex was once trading 800 factors more significant in early midday trade. Foreign institutional traders (FIIs) on Wednesday bought equity shares well worth ₹1,943 crores.

"The tempo of depreciation in Rupee has weakened due to decrease price of outflows and improved intervention from RBI. Over the next few weeks, the key facts to watch will the contamination curve of COVID-19, accompanied by using any signs of whether or not the second wave is rising in China or not. If the curve continues to flatten throughout the globe, then it will help Rupee get better-lost ground. Otherwise, Rupee can continue to inch in the direction of 77.50 levels," said Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities.

The US greenback was once flat against critical global currencies with the dollar index buying and selling a 100.17.

Weighing on the Rupee, oil expenditures these days extended features as the world's top oil producers seemed to be transferring nearer to a deal to curb output. Brent for July transport brought 0.4% to $32.97 a barrel.

"The essential tournament to appear ahead to today would be the meeting between OPEC and OPEC+ to talk about production cuts. India is searching to bolster its strategic petroleum reserves to take advantage of low crude prices," stated Abhishek Goenka, founder and CEO, IFA Global.

"Today there is a G-Sec auction of ₹19,000 crores. The cutoffs will be interesting to watch. The subsequent State Development Loans auction is on Monday. The spread of G-Sec over repo and that of SDLs over G-Secs has reached alarming levels on issues about following fiscal slippage," he added.