Rupee opens 26 paise up at 72.47 against dollar

The rupee on Tuesday opened 26 paise higher at 72.47 against the US dollar following some selling in the American currency by banks and exporters.

The US dollar on Monday slipped to a six-week low against a basket of currencies, as investors bet on the US Federal Reserve easing policy in a bid to counter the negative impact from the spread of the new coronavirus.

In the previous session, the local currency declined to the lowest level in a year after two fresh cases of coronavirus were detected in India. The Health Ministry reported two more positive cases of the novel coronavirus in India, one in Delhi and another in Telangana.


Domestic equities also extended its losses for the seventh-consecutive session after health ministry reported a couple of fresh cases in India.

“We expect the rupee to be weighed down amid weaker-than-expected economic number and FIIs selling in Indian equities,” Motilal Oswal Financial Services said.

Yesterday, the WHO reported that its greatest coronavirus concerns were South Korea, Italy, Iran and Japan, but that it was still possible for all countries to contain the virus.

“Today, USDINR pair is expected to quote in the range of 72.20 and 73.05,” Motilal Oswal said.

On the other hand, Euro continued to move sharply higher after the ECB President hinted that they are ready to take “appropriate and targeted measures” to fight the economic impact of the coronavirus outbreak. The greenback was also weighed down after ISM manufacturing PMI number released for February came in marginally below expectation at 50.1.