Rupee Declines To Record Low of 76.44

Roshni Agarwal

Rupee on April 9, 2020 opened strong at 76.13, up 21 paise versus its previous weak closing to near record low of 76.34 per US dollar. Nonetheless, as sentiments remained weak due to covid 19 which has severly impacted global economy including India, touched a new low of 76.44 per US dollar.

Amid coronavirus induced threat to the economy, rupee touched an all time low of 76.40 per dollar earlier in March.

On Wednesday, rupee inched lower as there was sluggishness in equities with high volatility after they recorded biggest one-day gains on the Sensex. Also, rising number of coronavirus cases as well as toll due to it dented sentiment. Further, the weakness came in as oil prices strengthened as also dollar index crept higher due to concerns over corona.

Oil on Thursday gains as the impending OPEC-Russia meet is to deliberate on production cut though analysts expect the cuts to be of little help in moving oil prices higher as demand has been waning world over due to lockdowns.

Also read how rupee's depreciation will hurt your financial investments

In the previous session, brent turned negative after US crude inventories gained the most of record.

In the bond market, the yield on 10-year benchmark bond opened at 6.45%. The yield has been on the rise ever since the government announced its borrowing plan for the H1FY21. Bond markets are worried over additional borrowing as the current pandemic has taken the Indian economy by storm similar to global economy.

Goldman Sachs has made the weakest forecast for India's growth for FY21 at multi-decade low of 1.6%.

Meanwhile, gold has been gaining ground and has even surpassed levels of Rs. 45000 on the MCX in futures trade as its appeal as 'safe haven' has gained amid pandemic, easing in interest rates, sharp recession and augmented government borrowing to tide over the fall-out due to coronavirus.

Meanwhile, tracking gains in the US markets that gained on hopes of the coronavirus leveling up, Indian equities are trading firm with Nifty holding 9000 levels.

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