Rupee extends losses, trades at day's low

Indian rupee extended the early losses and trading near the day's low level at 75.95 per dollar, amid selling seen in the domestic equity market.

It opened 27 paise at 75.84 per dollar against Friday's close of 75.57.

At 11:48 IST, the Sensex was down 923.32 points or 2.97% at 30174.41, and the Nifty was down 266.00 points or 2.91% at 8870.85.

"Overall market sentiments have been lacklustre and last week, the spot market traded in a very tight range. The fiscal measures undertaken by FM Sitharaman to reduce risk aversion and improve liquidity didn't have major impact on USD/INR spot. The spot is trading above and respecting the immediate support of 75.25," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

"The crucial support lies at 75-75.25 zone, a break of which will take USD/INR spot towards 74.85. However, this will be driven only by FII participation, otherwise a rally towards 76 is more likely," he added.

At 10:11 IST, the Sensex was down 681.17 points or 2.19% at 30416.56, and the Nifty was down 199.50 points or 2.18% at 8937.35.

Oil prices jumped by more than $1 a barrel on Monday to their highest in more than a month, supported by ongoing output cuts and signs of gradual recovery in fuel demand as more countries ease curbs imposed to stop the coronavirus pandemic spreading.

The dollar held its ground on Monday as concern about global tensions with China overshadowed improving sentiment from easing coronavirus lockdowns, while talk of negative interest rates pushed the pound to an almost two-month low.

USD-INR futures opened slightly lower in the last session and prices rose strongly for most of the session till high of 75.92. Prices have broken out from its strong resistance of short term declining trend line in the last session. Therefore, prices are expected to rise further from these levels towards next strong resistance placed around its recent multiple tops at 77.06 level, said Way2Wealth.

Date: May 19