Rupee opens 20 paise down as coronavirus scare spreads

The rupee on Thursday opened 20 paise down at 73.42 against the US dollar as increasing number of coronavirus cases in the country kept market participants on edge.

The number of coronavirus cases in India increased to 29, including 16 Italians touring through Rajasthan, the government said on Wednesday, adding all international passengers will now be screened at airports, amid growing concern over the spread of the respiratory infection.

Weakness in the rupee was also seen after reports showed that the RBI is likely to cut rates. The panic of coronavirus played into the domestic market, as well as on the global front, which has forced FIIs to pull out funds.


“Accelerated selloff in the currency was also on the back of selling by FIIs in the equity and debt segment in the last few sessions. The Federal Reserve slashed interest rates by half a percentage point in the first such emergency move since the 2008 financial crisis, amid mounting concern that the coronavirus outbreak threatens to stall the record US economic expansion,” Motilal Oswal Financial Services said.

Today, USDINR pair is expected to quote in the range of 73.25 and 73.90, the brokerage house added.

The dollar got support at lower levels after private payrolls number released from the US came in better than estimates. Data showed private payrolls rose by 183,000 in February compared to estimates of 170,000 jobs. The revised ADP number brought it almost perfectly in line with the government’s initial private payroll estimate of 2,06,000 for January.

Market participants will be keeping an eye on the non-farm payrolls number that will be released tomorrow and better-than-expected number could support the dollar at lower levels.