Rupee Slumps 50 Paise To 72.74 Against US Dollar

The rupee pared all its initial gains and settled 50 paise down at 72.74 (provisional) against the US dollar on Monday after two fresh cases of coronavirus detected in India. Forex traders said the Indian rupee which started the day on a positive note, witnessed heavy volatility and finally settled with significant losses after two more positive cases were reported in the country.

The Health Ministry on Monday said two more positive cases of the novel coronavirus—one in Delhi and another in Telangana—have been reported. At the interbank foreign exchange market, the local currency opened at 72.09. During the day it saw a high of 72.04 and a low of 72.74 against the American currency.

The domestic unit finally settled at 72.74 against the greenback, down 50 paise over its previous closing price. The local unit had settled at 72.24 against the greenback on Friday. This is the second consecutive session of fall for the domestic unit during which it has depreciated by 113 paise.

“Rupee witnessed the highly volatile trading session, it was the only losing currency among Asia, after the government agency said the nation has found two new cases of coronavirus patients,” said V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.

Sharma further said that spot USD/INR is expected to remain under pressure amid weaker economic data and foreign fund flows. Meanwhile, the number of deaths globally in the new coronavirus outbreak passed 3,000 on Monday, as China reported 42 more deaths.