The rupee fell 70 paise to close at an all-time low of 76.34 per dollar on Wednesday, amid rising Coronavirus cases in the country and a weakening trend in the domestic stock markets. There is speculation that the government may extend the 21-day lockdown period beyond April 14.
Forex dealers said the rise in Brent crude prices and the strengthening of the US dollar index had affected the rupee sentiment. Traders said that investors’ perception of the impact of the coronavirus on the world economy remains weak.
The rupee opened weak at 75.83 per dollar in the interbank foreign exchange market. Later it declined further. At last, the rupee closed at 76.34 per dollar, down by 70 paise. The rupee had closed at 75.64 per dollar on Tuesday. Due to the coronavirus, the Reserve Bank has reduced trading hours in the foreign currencies, government bonds and call money markets from April 7 to 17 from ten to two in the afternoon.
HDFC Securities head-advisory (PCG) Devarsh Vakil said the rupee depreciated sharply against the US dollar due to the stance of other Asian currencies. Apart from this, the rupee sentiment was also affected due to high dollar index. The dollar index gained by 0.25 percent to 100.15, indicating the dollar’s strength against the six currencies.