Rupee rises 31 paise to 73.43 against US dollar amid concerns in rising COVID-19 cases

The Indian rupee fell 31 paise to 73.43 against the US dollar on 5 April amid concerns in rising COVID-19 cases.

In addition, losses in the domestic equity markets also fell on investor sentiment.

In the interbank forex market, the domestic unit opened at 73.38 against the US dollar, then fell to 73.43, a decline of 31 paise over the previous close.

On 1 April, the rupee depreciated against the US currency at 73.12. The foreign exchange market closed on 2 April due to Good Friday.

Reliance Securities said in a research note that the Indian rupee weakened on April 5 and could further weaken against the dollar due to concerns over India’s economic outlook following further increases in coronovirus infection.

According to the updated Union Health Ministry data updated on 5 April, India reported 1,03,558 coronavirus infections a day from the nationwide COVID-19 tally to 1,25,89,067.

The note noted that Asian currencies were borderline, and that China, Hong Kong, Britain and Australian markets were lower than normal.

The major driving factor this week will be the monetary policy meeting of the Reserve Bank of India (RBI).

Meanwhile, the Dollar Index, which estimates the strength of the greenback against a basket of six currencies, fell 0.02% to 92.99.

Brent crude futures, the global oil benchmark, fell 0.89% to $ 64.28 a barrel.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading at 1,309.3 points lower at 48,720.53, and the broader NSE Nifty fell 367.40 points to close at 14,499.95.

Foreign institutional investors were net buyers in the capital market, as they bought shares worth ₹ 149.41 crore on 1 April, according to exchange data.