Mumbai: The Indian Rupee fell 11 Paisa against the US currency and closed at its weakest level in nearly five months on Thursday. This is because the rapid revival of Covid cases in the country could hinder economic recovery. The domestic currency recorded four consecutive session losses and settled at US $ 74.58, the lowest rupee level since November 13, 2019.
In the interbank foreign exchange market, local units opened against the Greenback at 74.38 and traded between 74.19 and 74.93 during the day. On Wednesday, the Indian Rupee plunged 105 Paisa to mark the biggest single session decline in more than 20 months. In the last four sessions, domestic units have lost 146 Paisa in valuations against the US dollar.
Jateen Trivedi, Senior Research Analyst at LKP Securities, said: Although the Indian Rupee trend is weak, INRs will range from 74.45 to 75.15 in future sessions. According to HDFC Securities research analyst Dilip Palmer, the rupee fell further on Thursday amid domestic headwinds of rising virus cases and slowing economic recovery due to lack of central bank intervention. India recorded a record daily surge of 1,26,789 new COVID-19 cases, boosting the number of infections to 1,29,28,574. On the other hand, the number of active cases also increased and exceeded 90,000 rupees again. Data updated on Thursday showed.
Meanwhile, the dollar index, which measures the strength of the dollar against a basket of six currencies, fell 0.06 percent to 92.39. Brent crude, the global oil benchmark, fell 0.51% to $ 62.84 a barrel.
On the domestic equity market side, the BSE Sensex ended at 49,746.21, up 84.45 points or 0.17 percent, while the broader NSE Nifty rose 54.75 points or 0.37 percent to 14,873.80. According to exchange data, foreign institutional investors were net buyers in the capital markets as they bought shares worth Rs 110.85 on Thursday.
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Rupee plunges to a nearly five-month low of 74.58 against the US dollar
Source link Rupee plunges to a nearly five-month low of 74.58 against the US dollar