Rupee falls 25 paise to 76.31 against US dollar touches Dh20.79

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Forex traders said the rupee opened on a weak note taking negative cues from Asian equities.
Forex traders said the rupee opened on a weak note taking negative cues from Asian equities.

Dubai - The rupee had settled at 76.06 against the US dollar on Thursday.

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Published: Fri 24 Apr 2020, 9:25 AM

Last updated: Fri 24 Apr 2020, 12:50 PM

The rupee depreciated by 25 paise to 76.31 against the US dollar to quote at Dh20.79 in opening trade on Friday, tracking weak domestic equities and strengthening of the US dollar overseas.
Forex traders said the rupee opened on a weak note taking negative cues from Asian equities. The rupee opened at 76.30 at the interbank forex market and then fell further to 76.31, down 25 paise over its last close.
The rupee had settled at 76.06 against the US dollar on Thursday.
"Asian equities and US stock futures fell on Friday morning, amid doubts about progress in the development of drugs to treat COVID-19 and weak data from the United States," Reliance Securities said in a research note.
It further added that "the US dollar rose against the Euro and a basket of currencies this Friday morning and could weigh on the domestic unit intraday".
Forex traders said market sentiment weakened after a potential antiviral drug for coronavirus reportedly failed its first trial. Market participants are concerned that the sharp rise in coronavirus cases could weigh on the global as well as domestic economy.
The dollar index, which gauges the greenback's strength against a basket of six currencies, advanced by 0.08 per cent to 100.50. The dollar was headed for its best week since early April on Friday as tumbling oil prices weighed on commodity currencies and division over Europe's emergency fund dragged on the euro.
The dollar stands near a two-and-a-half week high against a basket of currencies and is 0.9 per cent stronger for the week. It is up nearly 3 per cent against the oil-sensitive Norwegian krone and about 1 per cent on the euro.
Moves in the Asian session were modest and led by a drift lower in the Australian and New Zealand dollars as inconclusive results from a Gilead antiviral drug trial on patients with Covid-19 unnerved traders who have been looking to headlines for direction.
"I'm running with a more bearish story for the next two or three weeks," said Westpac FX analyst Imre Speizer.
"The economic data is going to be horrible. I'm betting that markets will be shocked by it, even though we know it's coming, and that will cause risk sentiment to fall," he said, which means selling pressure on the New Zealand dollar.
The Aussie and kiwi each shed about 0.2 per cent, holding the kiwi below 60 cents at $0.5996 and the Aussie at $0.6359, beneath resistance around 64 cents per dollar.
Both had rallied through those levels overnight as markets shrugged off dire economic news in Europe and the United States and commodity prices forged ahead.
EURO SOFT
The euro fell to a one-month low of $1.0756 on Thursday, and struggled to lift much above it on Friday after the European Union agreed to build a trillion euro emergency fund, but left the details for later.
With Italy and Spain hit far harder than Germany by the crisis, old enmities have surfaced across a bloc which faces a cut to output as deep as 15 per cent according to the European Central Bank.
"We have no idea how it will be funded and this is not the panacea to stop an impending 15 per cent contraction in GDP," said Chris Weston, head of research at Melbourne brokerage Pepperstone.
The euro last sat at $1.0772. The British pound was steady at $1.2352, which is down about 1.1 per cent for the week, and the Japanese yen softened slightly to 107.64 per dollar.
Preliminary goods-orders data in the United States and a German business sentiment survey due later on Friday are unlikely to improve investors' mood, with any global recovery expected to be slow and patchy.
"It depends on what you mean by recovery," said HSBC economist Frederic Neumann, who is forecasting an 8.4 per cent annualised expansion in Asia, excluding Japan, in the second half of 2020.
"The return of growth is comforting, especially for financial markets looking for a light at the end of the tunnel," he said. "But the cumulative shortfall in demand will also mean lingering financial pressures for some borrowers and fewer available jobs." - PTI, Reuters
 



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