Rupee jumps sharply this week against US dollar2 min read . Updated: 26 Jun 2020, 08:43 PM IST
- The rupee may continue to trade in 75.00 and 76.50 levels against the US dollar in the near term, say analysts
The rupee pared initial gains to slightly higher against the US dollar today as a stronger greenback and concerns about rising covid-19 cases weighed on investor sentiment. The rupee ended 3 paise higher at 75.64 per US dollar as compared to the previous close of 75.67. The rupee opened on a strong note at the interbank forex market at 75.52 against the US dollar and so far during the day traded in the range of 75.43 to 75.65.
On a weekly basis, the domestic unit as appreciated by 56 paise. It had settled at 76.20 on June 19.
“Despite the rising coronavirus concerns, the global equity markets are higher reacting to new stimulus packages and unconventional easing. But, there is a lot of uncertainty over the spike in COVID-19 cases. The market is trying to figure out what the impact this is going to have on consumer activity in coming months, and it’s not clear now because we don’t know how bad this spike is going to get. So we expect it to trade within 75-76 in coming days," says Rahul Gupta, head of research for currency at Emkay Global Financial Services.
The number of cases around the world linked to the disease has crossed 96 lakh and the death toll has topped 4.89 lakh.
Meanwhile, in India, the death toll due to COVID-19 rose to 15,301 and the number of the number of infections rose to 4,90,401, according to the health ministry.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.17% to 97.55.
Oil prices dipped on Friday, erasing earlier gains, on concerns about rising new coronavirus cases in the United States and China and expectations of U.S. output ticking up while crude stockpiles linger at record highs.
On the domestic equity market front, the 30-share index settled 329.17 points, or 0.94 per cent, higher at 35,171.27, while the NSE Nifty surged 94.10 points, or 0.90 per cent, to 10,383.
Foreign institutional investors were net sellers in the capital market, as they sold equity shares worth ₹1,050.61 crore on Thursday, according to provisional exchange data.
"The rupee has been trading range bound in the last couple sessions. There are no fresh triggers in the market. There is growing concern regarding second wave of the coronavirus as cases are rising across the world. However FIIs inflows may provide respite to the rupee. Overall, market will focus on coronavirus related development whether second wave emerges or not and India and China border tension. Broadly the rupee may continue to trade in 75.00 and 76.50 levels in the near term," said Rushabh Maru, research analyst at Anand Rathi Shares and Stock Brokers. (With Agency Inputs)