Home >News >India >Rupee closes at an all-time low of 76.87 against US dollar

The Indian rupee tanked 43 paise to close at an all-time low of 76.87 against the US dollar on Thursday tracking weak emerging markets and a sharp rise in coronavirus cases in the country.

Forex traders said the weakness in the rupee was largely due to strengthening of the US Dollar against the basket of currencies as investors fled to the safe haven greenback amid weakening risk appetite in the markets.

The rupee opened weak at 76.74 and then fell further to hit an all-time low of 76.87, down 43 paise over its last close. On Wednesday, the rupee closed at 76.44 against the US dollar.

Benchmark index, Sensex closed higher by 222.80 points or 0.73% to close at 30602.61 points and Nifty up by 67.50 points or 0.76% to close at 8,888.80.

Foreign investors have pulling out from emerging markets on expected slower earnings growth leading to a pressure on the rupee. A global flight to liquidity has also been taking a toll on emerging market currencies. India's currency though has seen a marginal dip compared to other emerging market currencies in 2020.

From the beginning of the year, Foreign Institutional Investors (FIIs) were net sellers of shares worth $ 6.62 billion and $10.53 billion in equities and debt markets. Domestic Institutional Investors (DII) were net buyers worth 73,018.09 crore.

IMF said Thursday that Asia's economic growth this year will grind to a halt for the first time in 60 years, as the coronavirus crisis takes an "unprecedented" toll on the region's service sector and major export destinations, the report noted.

Moreover, market participants are also concerned that the sharp rise in coronavirus cases could weigh on the economy.

Globally, the number of covid-19 cases has crossed two million. In India, nearly 12,000 coronavirus cases have been reported.

Brent crude futures, the global oil benchmark, rose 1.44 per cent to USD 28.09 per barrel.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.46% to 99.91.

(With inputs from PTI).

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