Rupee plunges to 74.58 against US Dollar amid rising Covid-19 cases

The Indian rupee on Thursday opened at 74.38 against the greenback and traded in the range of 74.19 to 74.93.

The Indian rupee on Thursday suffered one of the biggest single-day fall by 11 paise against the US currency in nearly five months, amid concerns over rising Covid-19 cases across the nation. Charting its fourth straight session loss, the Indian currency has locked itself at 74.58 to the US dollar, the lowest level for the rupee since November 13, 2019.

The recent News18 report suggests that the domestic currency opened at 74.38 against the greenback and traded in the range of 74.19 to 74.93. The Indian rupee on Wednesday stooped 105 paise to mark its biggest single-session drop in over 20 months. It has lost 146 paise in its valuation against the US dollar in the past four sessions.

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Jateen Trivedi, Senior Research Analyst at LKP Securities, reportedly pointed out the soaring expenditure by the government on vaccines and health products due to rising COVID-19 cases. He also mentioned that INR will be seen in a range of 74.45-75.15 in sessions ahead with a weak trend for the rupee.

“Government spending keeps increasing on vaccines and health products due to rising COVID-19 cases. INR will be seen in a range of 74.45-75.15 in sessions ahead with a weak trend for the rupee,” Jateen Trivedi, Senior Research Analyst at LKP Securities said.

The report further quoted Dilip Parmar, Research Analyst at HDFC Securities, informed that the rupee drifted further downward on Thursday amid domestic headwinds of slower economic recovery due to rising virus cases and the absence of the central bank’s intervention.

The government’s efforts to contain the Coronavirus situation in India appears to be downgrading as the country has recorded a single-day spike of 1,26,789 new COVID-19 cases, pushing its infection tally to 1,29,28,574. Meanwhile, the Union Health Ministry, on Thursday released the new data for the soaring Covid-19 cases and reported that the number of active cases too went upwards to breach the nine lakh-mark again.

On the other hand, the dollar index – gauging the greenback’s strength against a basket of six currencies – nosedived 0.06 per cent to 92.39. Brent crude, the global oil benchmark, was reportedly trading 0.51 per cent down at $ 62.84 per barrel.

The BSE Sensex ended 84.45 points or 0.17 per cent higher at 49,746.21, while the broader NSE Nifty advanced by 54.75 points or 0.37 per cent to 14,873.80, reported News18. According to the exchange data, Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 110.85 crore on Thursday.