Rupee ends 24 paise lower at 74.11 per dollar
74.20-74.40 can be on cards in coming sessions, says Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.
October 29, 2020 / 02:13 PM IST
Indian rupee ended 24 paise lower at 74.11, amid selling seen in the domestic equity market.
It opened at lowest level against the dollar since August 27 at 74.04 per dollar versus previous close of 73.87 and traded in the range of 73.94-74.16.
At 14:08 IST, the Sensex was down 242.11 points or 0.61% at 39680.35, and the Nifty was down 82 points or 0.70% at 11647.60.
"The toxic brew of no US fiscal stimulus and rapidly rising coronavirus cases are dwindling the market sentiments especially ahead of the US election event risk. The spot is not breaking the psychological level 74, the odds of spot going beyond 74 remains high as market volatility has started to rise," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
"The looming uncertainty over the US Presidential outcome will keep USDINR afloat but until it is below the 74 mark, we may expect it to trade in between 73.40–74. Only a consistent trading above 74, will push prices towards 74.20 zone," he added.
The dollar held gains against a basket of major currencies on Thursday as escalating coronavirus cases in Europe stoked fears across markets that fresh lockdowns would further hit the already fragile economic recovery.
Oil prices rose in early trading on Thursday, regaining some of the ground lost in a 5% slump overnight, amid the prospect of tighter short-term supply with two-thirds of U.S. output shut in the Gulf of Mexico as Hurricane Zeta slammed Louisiana.
"Rupee ended lower on broad sell off in capital markets globally, giving some strength to US Dollar Index. Weak stock strong dollar along with month-end oil importers demand supported USDINR. 74.20-74.40 can be on cards in coming sessions," said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.