Rupee trades lower against US dollar on Monday amid growing fears over coronavirus

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Published: January 27, 2020 10:46:36 AM

At 10.30 AM, the rupee was trading at 71.44 a dollar, down 0.15 per cent versus Friday's close of 71.33 against the US dollar

Rupee to dollarThe instability in rupee is expected to continue ahead of FOMC meeting and India’s Union Budget. A major development on China coronavirus can be a spoilsport

The rupee opened sharply lower at 71.49 against the US dollar on Monday tracking weak opening in the domestic equity market and growing fears over new coronavirus in China. The instability in rupee is expected to continue ahead of FOMC meeting and India’s Union Budget. Also, a major development on China coronavirus can be a spoilsport. USDINR is expected to trade in a range with crucial support placed at 71.05 and 71.60 can act as a major resistance, said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services. At 10.30 AM, the rupee was trading at 71.44 a dollar, down 0.15 per cent versus Friday’s close of 71.33 against the US dollar. On the year-to-date (YTD) basis, the rupee has strengthened 0.8 per cent. 

In the domestic equity market, Sensex and Nifty were trading nearly 0.25 per cent lower on Monday. S&P BSE Sensex was trading 105 points lower at 41,507, while broader Nifty 50 index was ruling at 12,212.45, down 36 points.

Foreign institutional investors bought equities worth Rs 659.11 crore, while domestic institutional investors (DII) offloaded shares worth Rs 417.96 crore on a net basis on Friday, as per the provisional exchange data showed. 

Crude prices fell more than 2% to multi-month lows on Monday as the rising number of cases of the new coronavirus in China and city lockdowns there deepened concerns over oil demand, even as Saudi Arabia’s energy minister sought to calm the market, according to a Reuters news report. Brent crude fell by $1.36 a barrel, or 2.2%, to $59.33 having earlier dropped to $58.68, its lowest since late October. US crude was down by $1.30, or 2.4%, to $52.89, having earlier eased to $52.15, the lowest since early October.

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