Rupee tumbles 31 paise against US dollar to lowest since April 28

Mumbai: The Indian rupee dropped 31 paise against the US dollar in early trade on Friday as globally investors flocked to safe-haven currency bets amid a rout in world stock markets.

At 10:07, the rupee was down 0.41 per cent or 30.87 paise at 76.09, the level last seen on April 28. It had opened at 76.10 compared with a previous close of 75.78.

Elsewhere in the world, the safe-haven Swiss franc and the yen held on to gains on Friday while the US dollar also held firm against riskier currencies after global stock prices tumbled on renewed doubts over the prospects of a quick recovery in the global economy, Reuters reported.


Doubts over the economy stemmed in part from the US Federal Reserve's dire economic assessment as well as fears over new coronavirus infections, though some analysts said a stock market correction was inevitable after a rally.

“On the domestic front, market participants will be keeping an eye on inflation and industrial production number. Expectation is that the number could disappoint and that could keep the rupee weighed down,” Motilal Oswal said in a note.

The brokerage expects rupee to quote in the range of 75.80 and 76.40 for the day.

US equity markets witnessed sharp sell-off over growing concerns that a resurgence of coronavirus infections could stunt the pace of reopening economies. Cases of the disease have jumped in several US states in recent days, raising concern among experts who say authorities have loosened restrictions put in place to contain the spread too early.