Rupee recovered by 10 paise to close at 76 against US currency
Reportedly the rupee on tuesday recovered by 10 paise to close at 76.63 against the US currency on increased risk appetite following easing Sino-US trade war concerns. The US dollar declined against major Asian currencies and the euro after a US official said that the country was not planning any punitive action against china over the handling of the coronavirus pandemic.Forex traders said the rupee is trading in a narrow range as sustained foreign fund outflows and concerns over coronavirus outbreak weighed on the local unit.
At the interbank foreign exchange, the rupee opened at 76.62 and finally settled at 76.63, registering a rise of 10 paise over its previous close. During the day the domestic unit saw an intra-day high of 76.50 and a low of 76.72 against the US dollar. On monday, the rupee had settled at 76.73 against the US dollar.Domestic stocks advanced in early trade with the benchmark Sensex trading 85.45 points higher at 31,800.80 and broader Nifty 15.30 points at 9,308.80.
Later, stocks gave up gains and BSE index settled 261.84 points or 0.83 per cent lower at 31,453.51, and the NSE Nifty fell 87.90 points or 0.95 per cent to close at 9,205.60. "Other Asian currencies have also started with gains against the US Dollar this tuesday morning amid risk appetite returning to the market as many countries planned to ease the restrictions on the lockdown enforced due to the COVID-19 pandemic," reliance Securities said in a research note. Forex traders said the rupee would remain an interplay between COVID-19 situation and the Sino-US tensions. Brent crude futures rose 8.05 per cent to USD 29.39 per barrel. Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal oswal Financial services said "In the last couple of sessions FIIs have been net sellers and this could keep major gains for the currency. We expect that the momentum for rupee would continue to remain negative also on the back of broad strength in the dollar against its major crosses".