Indian Rupee falls against US Dollar, $1 is now equal to ₹76.10

Today, Indian Rupee fell sharply against US Dollar. It opened at ₹76.10 per $1 and traded in the range of ₹76.10 to ₹75.84 during the day. It settled at ₹75.84 per $1. The global economy is suffering due to the Coronavirus outbreak. The Sensex rebounded to end higher after being down about 1200 points at day’s low.

Overnight, all three major US stock market indices plunged over 5% each. The US dollar index, which measures the greenback against a basket of major currencies, was up 0.12% to 96.855 today, after strong overnight gains, indicating a flight to the safety of the dollar.

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Abhishek Goenka, Founder and Chief Executive Officer at IFA Global said, “Tepid economic recovery projected by the Fed, signs of a second wave of cases in US cities that took the lead in opening up and elevated ‘continuing jobless claims’ caused investors to question the recent euphoria and conduct a reality check.”

“The US dollar has staged a comeback against the emerging market currencies and G7,” he added.

Yesterday, in capital market foreign institutional investors were net sellers. They sold shares worth  ₹805.14 crores.

Investor sentiment remained fragile because of rise in COVID-19 cases. Rahul Gupta, Head of Research- Currency At Emkay Global Financial Services said, “The uncertainty over coronavirus won’t completely fade away unless there’s a vaccine to it. So until then the appreciation in rupee will be limited, and we expect it to remain volatile. Currently, the USD/INR spot is hovering near its crucial resistance of 76. A consistent trading above that would take price towards 76.50, while 75.50 will act as a crucial support.”

The data for industrial production of April and consumer price inflation of May is due post market hours today.