Rupee Logs 1st Gain In 5 Days, Ends 6 Paise Higher

The rupee snapped its four-session losing run on Thursday to close 6 paise higher at 73.33 against the US dollar amid hopes that efforts by countries and global agencies would offset financial damage from the novel coronavirus outbreak. Besides, easing crude oil prices and weakness in the dollar vis-a-vis other key global currencies also helped the rupee build resistance.

At the interbank foreign bank exchange, the domestic unit opened on a positive note, but soon gripped by an intense volatility. During the session, the rupee swung between a high of 73.04 and a low of 73.56 against the American unit. It finally settled at 73.33, showing a rise of 6 paise over its previous close.

Global crude oil benchmark Brent Futures dropped 1.16 per cent to USD 50.91 per barrel. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.27 per cent to 97.07.

The IMF on Wednesday said it will make available about USD 50 billion through its rapid-disbursing emergency financing facilities for low income and emerging market countries that could potentially seek support on account of the coronavirus.

Back home, the RBI has also said it is closely monitoring global as well as domestic situation regarding the impact of deadly coronavirus and ready to take necessary action to ensure orderly functioning of financial markets. On the equity market front, the BSE benchmark Sensex settled 61.13 points or 0.16 per cent higher at 38,470.61; and the broader NSE Nifty rose 18 points or 0.16 per cent to finish at 11,269.

“Rupee opened weak near 73.40 and saw weakness towards 73.55, but witnessed strength there after strongly towards 73.05 zone. The strength was witnessed due to overseas investors increasing their holding in Indian stocks at some point,” said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.