Rupee Breaches 73-Mark, Dives 47 Paise Against US Dollar

Falling for the third consecutive session, the rupee on Tuesday slumped 47 paise to 73.23 (provisional) against the US dollar, as investor sentiment remained fragile amid concerns over the impact of coronavirus.

Forex traders said the Indian rupee which started the day on a positive note witnessed heavy volatility during the session and finally settled below 73 per US dollar level as uncertainty over coronavirus spooked investors. At the interbank foreign exchange market, the local currency opened at 72.50.

During the day it saw a high of 72.43 and a low of 73.34 against the American currency. The domestic unit finally settled at 73.23 against the greenback, down 47 paise over its previous closing price.

The local unit had settled at 72.76 against the greenback on Monday. This is the third consecutive session of fall for the domestic unit during which it has depreciated by 160 paise.

“Rupee fell to the lowest level in a year following an increase in number of reported cases on coronavirus in India.

Market participants will be keeping an eye on the expected synchronised move from Central banks and that could trigger a move for the greenback,” said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.

Somaiyaa further added that the rupee (spot) is expected to quote with a negative bias and in the range of 72.80 and 73.50.