The rupee fell 105 paise to close at 74.47 against the US dollar.

The rupee rose 105 paise to close at 74.47 (provisional) against the US currency on Wednesday amid growing concerns over COVID-19 cases in the country.

Meanwhile, the Reserve Bank of India maintained the status quo at policy rates for the fifth consecutive time.

The central bank kept its key policy repo rate unchanged at 4%, but cautioned that the recent growth of COVID-19 infections has led to uncertainty over the economic growth recovery.

In the interbank foreign exchange market, the local entity opened against the greenback at 73.52 and traded in the range of 73.52 to 74.50 through the day.

The rupee eventually closed at 74.47 against the US currency, a decline of 105 paise against the previous close of 73.42.

Saif Mukadam said, “Indian rupee depreciated amid rising COVID-19 cases in India and concern over lockdown ban in some states.” Analyst, Sharekhan by BNP Paribas.

In addition, the central bank said that the recent upsurge in cases of coronovirus increases uncertainty in economic growth.

There has been a record daily increase in the number of new coronovirus cases in India, causing epidemic outbreaks within 24 hours with more than 1.15 lakh new infections, bringing the nationwide COVID-19 tally to 1,28,01,785. Is, the data of the Union Ministry of Health was updated on Wednesday.

Additionally, the market was cautious ahead of the FOMC meeting minutes to get more indications on monetary policy. Mr. Mukadam said that the rupee could trade between 73.70 to 74.75 in the next few sessions.

Meanwhile, the Dollar Index, which estimates the strength of the greenback against a basket of six currencies, fell 0.06% to 92.28.

The global oil benchmark Brent crude futures was trading up 0.53% at $ 63.07 a barrel.

On the domestic equity market front, the BSE Sensex rose 460.37 points, or 0.94%, to close at 49,661.76, while the broader NSE Nifty rose 135.55 points, or 0.92%, to 14,819.05 points.

According to exchange data, foreign institutional investors were net sellers in the capital market as they held shares worth Rs 1,092.75 crore on Tuesday.