The Indian rupee continued its downward journey on Thursday, sliding another 5 paise to trade at 73.44 against the US dollar amid mounting fears of a coronavirus-led economic slowdown.
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.
The Indian rupee settled for the day higher by 20 paise at 71.65 (provisional) against the US dollar on Wednesday in line with other Asian currencies, helped by lower crude oil prices.
The rupee on Monday fell by 34 paise to close at more than three-month low of 71.98 (provisional) against the US dollar, tracking heavy selling in domestic equities and strengthening of the American currency in the overseas market.
The Indian rupee tumbled by 24 paise to settle at 71.56 (provisional) against the US dollar on Tuesday as concerns over the economic fallout from coronavirus outbreak continued to roil forex market sentiment.
Investors also played their bets cautiously in view of India's rating outlook cut by Moody's Investors Services last week. Opening marginally lower, the Indian currency dropped to a low of 71.54 to the US dollar before settling at 71.47, showing a fall of 19 paise
At the interbank foreign exchange market, the rupee opened lower at 71.06 against the US dollar. During the day, the domestic unit fluctuated between a high of 70.87 and a low of 71.06.
At the Interbank Foreign Exchange, the rupee opened at 71.83 then lost further ground and fell to an intra-day low of 71.98 against the US dollar.
Domestic bourses opened on a positive note on Thursday with benchmark indices Sensex trading 139.69 points higher at 37,410.51 and Nifty up 41.20 points at 11,076.90.
At the Interbank Foreign Exchange, the rupee opened at 71.82 then fell to 71.84 against the US dollar, showing a decline of 13 paise over its previous closing.
The rupee finally settled at 71.71, higher by just 1 paise over its previous close. The rupee has extended gains for the fourth day in a row. The rupee had settled at 71.72 against the US dollar on Friday.
At the interbank foreign exchange, the rupee opened weak at 71.96 and fell further to 72.05 against the US dollar. The domestic currency, however, pared some losses and was trading at 71.95.Pessimism over US-China trade talks prospects also put pressure on the domestic unit, forex dealers said. However, a weak dollar against other major currencies overseas and softening crude prices restricted the rupee's fall, they added.
Forex traders said concerns about US-China trade spat kept market participants edgy. Rupee and most Asian currencies like South Korean won, Thai Baht, Malaysian ringgit, Japanese yen and Indonesian rupiah were trading lower.
The US currency losing strength against major global rivals also boosted the rupee sentiment. The US dollar index, which measures its strength against six global peers, dropped 0.18 per cent to 97.90 on expectations that the US-China trade talks will resume soon.
The rupee on Friday declined below the 72 mark against the US currency in opening session due to continued foreign fund outflows and losses in the equity markets.
At the interbank foreign exchange, the rupee opened weak at 71.65 then fell to 71.72 against the US dollar, showing a decline of 17 paise over its previous closing.
On Tuesday, the rupee had plunged 62 paise to close at a nearly six-month low of 71.40 against the US dollar in line with battered equities as global market turmoil and Argentine currency crash drove investors to safe havens.
The rupee deprecated by 38 paise and fell to 71 per dollar mark in early trade on Tuesday amid strengthening of the American currency and weak opening in domestic equities.
The rupee had settled at 68.75 against the US dollar on Monday.
Traders said, market participants are not very hopeful about large-scale easing by the Reserve Bank, following RBI Governor Shaktikanta Das's statement, wherein he said a change in monetary policy stance effectively equates to an additional 25-bps rate cut.
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