Rupee ends lower at 75.57 per dollar

June 04
19:08 2020

Indian rupee ended 11 paise lower at 75.57 per dollar, amid volatile trade seen in the domestic equity market.

It opened lower by 15 paise at 75.61 per dollar versus Wednesday’s close of 75.46 per dollar.

At 14:17 IST, the Sensex was down 283.66 points or 0.83% at 33825.88, and the Nifty was down 76.10 points or 0.76% at 9985.40.

Oil prices fell on Thursday, reversing gains in the previous session, on concerns that supply will rise if major producers are unable to agree to extend the depth of output cuts that have supported recent gains.

“Now investors have started focusing on the prospect that economies are re-opening all over the world from the pandemic. Thus, risk sentiment have turned positive and dollar index is subdued amongst major emerging market currencies,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

“There still exists slew of risks, including US-China trade tiff and concerns that it may jeopardise the Phase-1 deal.”

“Despite, strong inflows into equity, USD/INR spot was unable to break the crucial support of 75, and it reversed towards 75.40. The immediate resistance lies around 75.60,” he added.

The dollar-rupee contract on the NSE was at 75.68 in the last session. The open interest increased in June as well July series. June OI increased almost 10% in the last session, said ICICIdirect.

Risk on rally going on in most equity markets has triggered the dollar weakness. However, the rupee failed to strengthen in line with the rest of the Asian currencies, indicating some weakness, it added.

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