Rupee snaps 3-day winning streak, drops 13 paise to 73.18/USD

Halting its three-day winning run, the rupee on Wednesday declined by 13 paise to close at 73.18 (provisional) against the US dollar in line with the fall in the domestic equity market.

At the interbank foreign exchange market, the domestic currency opened at 73.02 against the American currency, but pared the gains to close at 73.18, registering a decline of 13 paise over its previous close.

During the session, the local unit hit an intra-day high of 72.93 and a low of 73.18. On Tuesday, the rupee had closed at 73.05 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.20 % to 89.93.

“The Indian rupee has seen a significant rise in the past few sessions amid a strong rally in global equity markets and a softer dollar index. However, it has pared gains today as the risk sentiment has weakened on concerns over the new virus strain in the Asia Pacific region, which could hamper growth,” said Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking.

Sachdeva noted that a possibility of an earlier-than-expected rate hike by the Fed have led to some risk-off. “Markets will be eyeing today’s Fed minutes for further cues,” Sachdeva said.

On the domestic equity market front, the BSE Sensex ended 290.69 points or 0.58 % lower at 49,902.64, while the broader NSE Nifty declined 77.95 points or 0.52 % to 15,030.15.

Foreign institutional investors (FIIs) were net buyers in the capital markets, as they purchased shares worth Rs 618.49 crore on Tuesday, as per provisional data.

Brent crude futures, the global oil benchmark, fell 1.95 % to $ 67.37 per barrel.

Meanwhile, India saw record 4,529 fatalities due to coronavirus in a single day pushing the COVID-19 death toll to 2,83,248, while 2,67,334 fresh infections were recorded taking the total tally of cases to 2,54,96,330, according to the Union Health Ministry data updated on Wednesday.


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