Indian rupee hits all-time low, touches 20.69 against UAE dirham

The rupee may also test 76.50 levels in the coming days and weeks, says experts

The Indian rupee opened higher by 21 paise at 74.77 per dollar on Friday versus Thursday's close 74.98. The rupee was trading at 20.42 against the UAE dirham, at 9:30 am (UAE time), according to XE.com

 
The dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.65 per cent to 102.08, helping the rupee trade higher.
The domestic unit had closed at 75.12 against the US currency on Thursday.
Meanwhile, Indian stock indices slipped into the red after starting in positive terrain, with the BSE Sensex trading 23.79 points or 0.08 per cent lower at 28,264.44; and the NSE Nifty was down 19.75 points or 0.24 per cent at 8,243.70 in morning deals.
Investors continued to assess the impact of Covid-19 on the economy, impacting the trading sentiment on bourses.
Foreign investors remained net sellers in Indian capital markets as they pulled out more than Rs 4,622.93 crore on Thursday, market data showed.
Brent crude futures, the global oil benchmark, rose 2.25 per cent to USD 29.11 per barrel.

The 10-year government bond yield was at 6.37 per cent in morning trade.
Stress test
The rupee may test 76.50 in the coming days and weeks, according to Abhishek Goenka, chief executive at India Forex Advisors.
"In such a risk-averse situation, when investors are unloading equities, bonds and currency, no level has any sanctity."
Hitesh Jain, lead analyst at Yes Securities, said the rupee volatility will persist unless the adverse impact of the pandemic on the global financial markets abates.
"Though falling current account deficit - thanks to low oil prices - and stronger balance of payment is a positive for the rupee, markets are clearly positioned for a risk-off trade. We see rupee in the range of 74-76 for the next one to two months," he pointed out.

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