The rupee fell 18 paise to close at 73.30 (provisional) against the US currency on Monday amid concerns over rising COVID-19 cases, a strong US currency in the domestic market and a fall in risk.
In addition, losses in domestic equity markets fell on investor sentiment.
In the interbank foreign exchange market, the local unit opened against the greenback at 73.38 and traded in the range of 73.28 to 73.45 during the day.
Finally the rupee ended at 73.30 against the US currency, registering a decline of 18 paise at the previous close of 73.12. The foreign exchange market closed on 2 April due to Good Friday.
Meanwhile, the Dollar Index, which estimates the strength of the greenback against a basket of six currencies, rose 0.05% to 93.06.
BNP Paribas Research Analyst, Sharekhan said, “The Indian rupee has strengthened the dollar amid a strong dollar in the domestic markets and a fall in risk, coupled with an increase in US Treasury yields and economic data.”
In addition, the rupee may slip due to concerns over rising COVID-19 cases in India.
For the first time in India, more than 1 lakh cases of corona virus were reported. The Maharashtra government announced new restrictions, including night curfews and weekend lockdowns.
“However, the sharp decline in crude oil prices was halted. The rupee may range from 72.80 to 74.0 in the next session.”
Brent crude futures, the global oil benchmark, was trading 2.05% down at $ 63.53 a barrel.
On the domestic equity market front, the BSE Sensex closed 870.51 points or 1.74% lower at 49,159.32, while the broader NSE Nifty closed down 229.55 points or 1.54% at 14,637.80.
Foreign institutional investors were net buyers in the capital market as they bought shares worth net 149.41 crore as per exchange data on Thursday.
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