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Rupee falls to new lows

On Wednesday, the rupee had settled at 76.44
Forex traders said the weakness in the rupee was largely due to the strengthening of the dollar against a basket of currencies as investors fled to the safe-haven greenback amid weakening risk appetite in the markets.

Our Special Correspondent   |   Mumbai   |   Published 16.04.20, 08:17 PM

The rupee tanked 43 paise to settle at an all-time low of 76.87 against the dollar on Thursday amid rising concerns over a coronavirus-led economic slowdown.

Forex traders said the weakness in the rupee was largely due to the strengthening of the dollar against a basket of currencies as investors fled to the safe-haven greenback amid weakening risk appetite in the markets.

At the interbank foreign exchange, the rupee opened weak at 76.75, and during the day lost further ground to settle at 76.87, registering a fall of 43 paise over its previous close. During the session, the rupee moved between 76.68 and a low of 76.87 against the dollar. On Wednesday, the rupee had settled at 76.44.

Domestic equity markets found firmer ground after two sessions of declines . However, IT stocks tumbled after lacklustre results from Wipro underscored the economic challenges of the pandemic.

Shaking off an uncertain start, the 30-share BSE Sensex gained momentum in afternoon trade, before ending 222.80 points, or 0.73 per cent, higher at 30602.61. The NSE Nifty climbed 67.50 points, or 0.76 per cent, to close at 8992.80.

Weak macroeconomic data and unabated depreciation in the rupee capped buying momentum, traders said.

“Markets were more circumspect on Thursday, while IT stocks were impacted due to the earnings commentary from Wipro. The earnings for TCS will give a clearer picture on the impact on the IT sector and demand outlook from developed markets. Economic data from around the world remained grim and global markets also remained weak,” said Vinod Nair of Geojit Financial Services.

Bourses in Shanghai ended on a positive note, while Hong Kong, Seoul and Tokyo closed in the red. Brent crude futures, the global oil benchmark, rose 2.28 per cent to $28.32 per barrel.

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