The Indian rupee rose 10 paise to close at 75.63 against the US dollar on Tuesday, during higher domestic equity markets and gains in some Asian currency on increased risk appetite for following easing Sino-US trade war concerns. The US dollar declined against major Asian currencies and the euro after a US official told that the country wasn’t planning for any punitive action against China over the handling of the coronavirus pandemic situation.
Forex traders told that rupee is trading in a narrow range as like positive domestic equities supported the local unit while sustained foreign fund outflows and concerns over coronavirus pandemic weighed on the local unit. At the interbank of foreign exchange, the rupee opened at 75.62 and settled at 75.63 that registering a rise of 10 paise over the previous close. Amid the day the domestic unit saw an intra-day high of 75.50 and a low of 75.72 against the US dollar. Finally on Monday, the rupee had settled at 75.73 against the US dollar.
Domestic stocks were trading on a positive note with the benchmark Sensex trading 85.45 points higher at 31,800.80 and broader Nifty 15.30 points at 9,308.80. Later, stocks gave up gains and BSE index settled 261.84 points or 0.83 per cent lower at 31,453.51, and the NSE Nifty fell 87.90 points or 0.95 per cent to close at 9,205.60. As Reliance Securities said in a research note – “Other Asian currencies have also started with gains against the US dollar this Tuesday morning amid risk appetite returning to the market as many countries planned to ease the restrictions on the lockdown enforced due to the COVID-19 pandemic”.
Traders told that the investor sentiments remained fragile during concerns over the impact of corona virus pandemic on the domestic as also the global economy. Meanwhile according to provisional exchange data the foreign institutional investors were net sellers in the capital market as like they sold equity shares worth Rs 1,373.98 crore on Monday. The Financial Benchmark India Private Ltd. (FBIL) set the reference rate for the rupee or dollar at 75.7902 and for rupee or euro at 82.8351. The reference rate for rupee or British pound was fixed at 94.2103 and for rupee or 100 Japanese yen at 70.99.