The Indian rupee pared all its initial gains and closed 50 paise lower at 72.74 against the US dollar on Monday after two fresh cases of coronavirus were reported in India. The local currency which opened at 72.09 saw a high of 72.04 and a low of 72.74 during the day.
The domestic unit ended at 72.74 against the greenback, down 50 paise over its previous closing price. The currency had settled at 72.24 against the dollar on Friday. The currency witnessed heavy volatility and finally settled with significant losses after two more positive cases were reported in the country.
This is the second consecutive session of fall for the domestic unit during which it has depreciated by 113 paise. Rupee has fallen 1.89% since the beginning of this year.
"Rupee witnessed the highly volatile trading session, it was the only losing currency among Asia, after the government agency said the nation has found two new cases of coronavirus patients," said VK Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.
Sharma further said that spot USD/INR is expected to remain under pressure amid weaker economic data and foreign fund flows.
The Health Ministry on Monday said two more positive cases of the novel coronavirus-one in Delhi and another in Telangana -have been reported. Meanwhile, the number of deaths globally in the new coronavirus outbreak passed 3,000 on Monday, as China reported 42 more deaths.