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Indian rupee falls, touches 20.79 against Qatari riyal

Indian rupee falls, touches 20.79 against Qatari riyal

Agencies
Mumbai
The Indian rupee depreciated 19 paise to 75.90 against the US dollar in opening trade on Thursday tracking weak Asian currencies amid an escalation of tension between the US and China.
Forex traders said rising US-China tension weighed on the local currency even as positive domestic equities and improving risk appetite supported the local unit.
The currency opened weak at 75.90 at the interbank forex market, down 19 paise over its last close. The rupee was trading at 20.79 against the Qatari riyal, according to the XE currency converter.
The Indian rupee had settled at 75.71 against the US dollar on Wednesday.
“Asian currencies are weak this Thursday morning after US President Donald Trump said he was working on a strong response to China’s proposed security law in Hong Kong,” Reliance Securities said in a research note.
It further said that currencies could track the local equities during the session amid optimism over the reopening of economies combined with monetary and fiscal support the respective economies.
“Any recovery is likely to be short-lived wherein rupee can test levels of around 73.80-73.50. The larger trend continues to be weak for the domestic currency, given the economic blow from the coronavirus outbreak,” said Religare Broking Metals, Energy & Currency Research VP Sugandha Sachdeva said.
Concerns over economic damage caused by the coronavirus along with the exit of foreign investors, who have since January sold close to $10 billion in debt and equity segment also led to the rupee downfall.
On the domestic equity market front, the 30-share benchmark Sensex was quoting 321.01 points higher at 31,926.23 and the broader Nifty rose 84.40 points to 9,399.35.
Foreign institutional investors were net sellers in the capital market, as they sold equity shares worth Rs 334.74 crore on Wednesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 2.48 percent to $33.88 per barrel.

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