The rupee is down 5.87% against the US currency so far this year
The rupee declined by as much as 22 paise - or 0.29 per cent - to 75.77 against the US dollar in early trade on Monday, as the country remained in an extended lockdown to curb the spread of the coronavirus (COVID-19) pandemic. It was last seen trading 0.23 per cent lower at 75.72 against the greenback in late morning deals, having started the session at 75.55, unchanged from its previous close. At Friday's close, the rupee is down 5.87 per cent against the US currency so far this year.
Domestic stock markets rose more than 2 per cent in early trade amid gains across sectors, led by financial, automobile and metal stocks. The S&P BSE Sensex index jumped as much as 658.88 points to 32,301.58 in early deals, whereas the broader NSE Nifty 50 benchmark rose to as high as 9,439.90, after opening at 9,348.15 as against its previous close of 9,251.50.
The markets however lost steam by late morning deals. At 11:41 am, the Sensex traded 183.27 points - or 0.58 per cent - higher at 31,825.97 while the Nifty was up 56.20 points (0.61 per cent) at 9,307.70.
The dollar index - which gauges the American currency against six major peers overseas - registered cautious gains, rising as much as 0.13 per cent, and was last seen trading up 0.03 per cent.
Crude oil prices fell on Monday as concern over a persistent glut and economic gloom caused by the coronavirus pandemic combined to cancel out support from supply cuts at some of the world's top producers.
Brent crude futures - the global benchmark for crude oil - were last seen down 0.9 at $30.68 per barrel.
Analysts say the rupee is expected to move sideways in the near term.
"On the back of positive sentiments, if inflows in the equity continue to pour, it will prevent any sharp depreciation in the rupee in the near term," said Amit Pabari, managing director at forex advisory firm CR Forex Advisors.
"The pair has formed its near-term range within 74.85-75.85 levels," he added.
Currency markets currently operate within reduced trading hours due to the coronavirus-induced lockdown. The temporary timings are from 10 am to 2 pm, instead of the original 9 am to 5 pm.
