Rupee slides 70 paise to 75.59 a dollar as coronavirus fears mount

The Indian rupee tumbled by 70 paise to close at 75.59 against the US dollar on Monday as concerns around coronavirus impact on the economy continued to hurt sentiment globally.

Forex traders said heavy selling in domestic equities dragged the local unit amid mounting fears of a coronavirus-led economic slowdown.

Moreover, strengthening of the American currency in the international market also weighed on the domestic currency.

At the interbank foreign exchange market, the rupee opened at 75.17. During the day, it lost further ground and finally settled at 75.59, down 70 paise over its previous close.

The rupee had settled at 74.89 against the greenback on Friday.

"On the domestic front, rupee has been under pressure on back of selling by FIIs in equity and debt segment.
 

"Market participants will be keeping an eye on employment numbers that will be released from the US and weaker-than-expected economic data could keep under dollar weighed down," Motilal Oswal Financial Services Forex & Bullion Analyst Gaurang Somaiyaa said.

The number of COVID-19 cases climbed to 1,071 in India on Monday, while the death toll rose to 29, according to the Union Health Ministry.

The number of deaths around the world linked to the new coronavirus has touched nearly 35,000.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.58 per cent to 98.93.

The 10-year government bond yield was at 6.21 per cent.

Global crude oil benchmark Brent fell 8.34 per cent to USD 22.85 per barrel amid concerns over global growth.

On the domestic equity market front, the 30-share BSE barometer ended 1,375.27 points or 4.61 per cent lower at 28,440.32. Similarly, the NSE Nifty fell 379.15 points, or 4.38 per cent, to close at 8,281.10.

Foreign institutional investors (FIIs) sold equities worth Rs 4,363.61 crore in the Indian market on Monday, as per provisional data.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 74.8434 and for rupee/euro at 82.6411. The reference rate for rupee/British pound was fixed at 91.5604 and for rupee/100 Japanese yen at 68.89.