The rupee is down 5.80% against the greenback so far this year
Rupee vs Dollar Today: The rupee depreciated to as low as 75.95 against the US dollar in a volatile session on Tuesday, before recovering all of intraday losses to end marginally higher at 75.50. After starting the four-hour session down 15 paise at 75.88, the rupee hit the 75.95 mark against the greenback - down 22 paise or 0.29 per cent compared to its previous close - amid weakness across Asian currencies. However, the rupee finished the session higher by 5 paise compared with its previous close of 75.55. The country remained in the third phase of an extended nationwide lockdown with few exceptions to curb the spread of the coronavirus (COVID-19) pandemic.
Domestic stock markets fell more than 2 per cent during the session as financial stocks led losses across most sectors. The S&P BSE Sensex index shed 716.56 points to hit 30,844.66 at the weakest level during the day, whereas the broader NSE Nifty 50 benchmark slumped 195.25 points to 9,043.95 compared to its previous close of 9,239.20.
The dollar index - which gauges the American currency against six major peers overseas - fell as much as 0.17 per cent on Tuesday, and was last seen trading down 0.13 per cent.
(Also Read: INR Vs USD - Stock Exchanges Roll Out Rupee-Dollar Derivatives Contracts)
Crude oil prices rose following an unexpected commitment from Saudi Arabia to deepen production cuts in June. Brent crude futures - the global benchmark for crude oil - climbed to as high as $30.11 per barrel on Tuesday, and were last seen up 0.5 per cent at $29.79, having reversed some of the previous session's losses.
"Asian equity markets are trading lower after a barrage of news suggesting rising conflict between Australia-China over COVID-19 and also increase in hawkish talk between China-US over the trade deal and latter's investment into China," brokerage Kotak Securities said in a note.
"A big miss in the inflation data from China is also not helping sentiments."
Analysts say the rupee is expected to move sideways in the short term.
"Currently, the sentiments are mixed in the market flipping sides each day. Reaction of the markets and rupee are a result of the same. In the near term, it seems like rupee got a needed trigger to break 75.80 levels," said Amit Pabari, managing director at forex advisory firm CR Forex Advisors.
"The (INR-USD) pair is likely to continue trade within its broad range of 74.50-76.90 levels in an unbiased way. A breakout in the range will determine a change in trend," he added.
At Tuesday's close of 75.50, the rupee is down 5.80 per cent against the greenback so far this year.
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 normal timings of 9 am to 5 pm.
