Rupee takes initial losses, limits drop below 74.88 against dollar amid rising COVID-19 cases

The rupee closed in red as the second wave of COVID-19 weighed on investor sentiment.

Wiping out the initial gains, the rupee edged down one paise against the US dollar on Tuesday, April 20 to stand at 74.88 amid concerns over rising COVID-19 cases, which could have an impact on the economic recovery in the country. In the interbank forex market, the local unit opened at 74.65 against the dollar and touched an intraday high of 74.64. He witnessed a low of 74.98. At the start of a trading session, national unity appreciated 23 paise to 74.64 against the greenback. The rupee closed in red as the second wave of COVID-19 weighed on investor sentiment, traders said.

Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, slipped 0.04% to 91.03.

Slightly positive feelings as the government opens up vaccination for all citizens 18 and over. Stock markets are up, Asian currencies are up against the dollar and European currencies are up against the dollar as well. RBI appears to be protecting the 75.00 levels. All exporters must sell above the 75.00 levels while importers must wait to buy near 74.20 / 30 levels, ” said Anil Kumar Bhansali, Director of the Treasury, Finrex Treasury Advisors.

According to data from the Ministry of Health on Tuesday, the total COVID-19 cases in the country reached 1.53,21,089 with active cases exceeding the 20 lakh mark.

Compared to the daily record of US cases, India now has more than 2.70,000 daily infections, and the economic effect of the current wave is expected to be significant at least until the end of June 2021 So far, investors have withdrawn $ 615 million net from their portfolios, the trend indicating that portfolio outflows will continue over the next few sessions, ” said Kshitij Purohit, Product Manager, Currencies and Commodities at Capital Via Global Research Limited.

On the domestic stock market front, the benchmark BSE Sensex 30 stocks finished 243.62 points or 0.51 percent lower to 47,705.80 and wider NSE Nifty slipped from 63. 05 points or 0.44 percent at 14,296.40.

“The market had an extremely volatile session, the nifty / Sensex closed 63/243 points lower. After a sharp drop yesterday today, the Nifty / Sensex opened with more than 150/500 points but after strong open, it failed to maintain above. The 14500/48400 resistance mark and due to constant selling pressure at higher levels as well as lukewarm global indices, the index benchmark has corrected significantly, ” said Shrikant Chouhan, Executive Vice President, Technical Equity Research at Kotak Securities.

“The markets remain in a consolidation phase with high volatility in the range. Immediate support is seen at 14,200; volatility increases as the April deadline approaches. The medium term trend remains extremely positive with short term consolidation / correction. Energy, Pharmaceuticals and Real Estate stocks are trading in the buy zone as metals continue to remain unfavorable to new positions, ” said Sahaj Agrawal, Head of Derivatives Research at Kotak Securities.

Foreign institutional investors were net sellers in the capital market on April 19, according to the exchange data, as they sold shares worth Rs 1,633.70 crore. Brent futures contracts , the world benchmark for oil, rose 0.88% to $ 67.64 per barrel.

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