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Rupee depreciates 16 paise to 73.95 amid strong US dollar, weak equities

The domestic unit opened at 73.95 against the US dollar at the interbank forex market, falling 16 paise over its previous close. On Monday, the rupee plunged 23 paise to end at a two-week low of 73.79 against the US dollar

twitter-logoBusinessToday.In | December 22, 2020 | Updated 14:21 IST
Rupee depreciates 16 paise to 73.95 amid strong US dollar, weak equities
Traders said rupee is trading on a weak note against the US dollar as the greenback rebounded amid safe haven appeal for the currency

Indian rupee, the domestic currency depreciated by 16 paise to 73.95 per US dollar on Tuesday's opening trade tracking muted domestic equities and weakened risk appetite amid concerns about a new virus strain.

Traders said rupee is trading on a weak note against the US dollar as the greenback rebounded amid safe haven appeal for the currency.

The domestic unit opened at 73.95 against the US dollar at the interbank forex market, falling 16 paise over its previous close. On Monday, the rupee plunged 23 paise to end at a two-week low of 73.79 against the US dollar.

Meanwhile, the dollar index, rose 0.26 per cent to 90.27 against a basket of six currencies.

Abhishek Goenka, Founder and CEO, IFA Global said, "The risk sentiment was jolted by the news of a new strain of virus emerging in the UK and consequently about 40 countries imposing bans on flights arriving from the UK."

"The variant, which officials say is up to 70 per cent more transmissible than the original, triggered concerns about a wider spread which has prompted several European countries to take measures to prevent people arriving from Britain, including bans on flights and trains. Further, Asian currencies were weak this morning and could weigh on sentiments," Reliance Securities said in a research note.

On the domestic equity market front, market indices opened on a weak note on Tuesday, taking cues from global markets as concerns over the new coronavirus strain continued to spook investors. Sensex fell by 350 points to 45,200 and Nifty fell by 103 points to 13,225

Foreign portfolio investors (FPIs) sold shares worth Rs 323.55 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 486.12 crore in the Indian equity market on 21 December, provisional data showed.

Brent crude futures, the global oil benchmark, fell 0.51 per cent to USD 50.56 per barrel.Oil price fell more than 2% on Monday as new strain of coronavirus has pushed much of the U.K. into lock down and more restriction in Europe sparking fear of fuel demand.

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