The Indian fell 32 paise to 75.21 against the US dollar in opening trade on Monday, as investors braced for a prolonged period of uncertainty as coronavirus-induced lockdowns tightened across the world and in India.
Forex traders said weak opening in domestic equities dragged the local unit amid mounting fears of a coronavirus-led economic slowdown. The rupee opened weak at 75.17 at the interbank forex market and then fell further to 75.21, down 32 paise over its last close.
The rupee had settled at 74.89 against the US dollar on Friday. According to Reliance Securities, rupee could track weak regional equities which resumed their fall this Monday morning after the number of coronavirus infections surged around the world.
“However, we believe that RBI could be present to intervene to curb excess volatility. Technically, USDINR spot is expected to remain in the range of 74.70-75.70 levels,” it noted.
The number of deaths around the world linked to the new coronavirus has touched nearly 34,000. In India, the tally of confirmed coronavirus cases crossed the 1,000-mark.
Brent crude futures, the global oil benchmark, fell 6.22 per cent to USD 23.38 per barrel.
Foreign institutional investors (FIIs) remained net buyers in the capital markets, as they purchased shares worth Rs 355.78 crore on Friday, as per provisional data.
Domestic bourses opened on a negative note with benchmark indices Sensex trading 771.92 points down at 29,043.67 and Nifty down 237.60 points at 8,422.65.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.34 per cent to 98.69.
The 10-year government bond yield was at 6.12 per cent in morning trade. In an another move due to the pandemic, Oil prices extended losses in Asian trade Monday and languished at 17-year lows, with the coronavirus crisis escalating around the world and no end in sight to a vicious price war. US benchmark West Texas Intermediate fell 5.3 percent to trade at 20 a barrel, while international benchmark Brent crude was off 6.5 percent at 23.
The falls came after the death toll from the pandemic surged past 30,000 at the weekend as cases in hard-hit Europe and the United States showed no sign of letting up.
Senior US scientist Anthony Fauci estimated the virus could possibly result in 100,000 to 200,000 deaths in the United States, while President Donald Trump extended “social distancing” guidelines until April 30.
