Rupee falls below 75 level against US dollar amid coronavirus scare

The Indian rupee weakened further and fell below 75 level against the US dollar on Thursday amid sharp rise in coronavirus cases in the country and weak domestic equities.

Forex traders said market participants are concerned that rise in coronavirus cases, which has touched 169 in the country according to the Health Ministry, could weigh on the economy.

The rupee which opened on a weak note at 74.96 at the interbank forex market, lost further ground and touched a low of 75.12 against the US dollar, registering a decline of over 86 paise over its last close.

The local unit had settled at 74.26 against the US dollar on Wednesday.

Traders said there is a sense of anxiety among investors as they see the global as well as domestic economy plunging into a deep crisis due to coronavirus (Covid-19) pandemic that has killed nearly 9,000 and sickened lakhs of people around the globe.

Moreover, the steep decline in domestic equities and sustained foreign fund outflows further dampened the sentiment, they said.

Foreign investors remained net sellers in Indian capital markets as they pulled out more than Rs 5,085.35 crore on Wednesday, market data showed.

Domestic bourses were trading on a negative note on Thursday with benchmark indices Sensex trading 996.20 points down at 27,873.31 and Nifty fell 305.45 points to 8,163.35.

Brent crude futures, the global oil benchmark, rose 5.71 per cent to USD 26.30 per barrel.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.30 per cent to 100.85.

The 10-year government bond yield was at 6.40 per cent in morning trade.