Rupee slides 53 paise to settle above 76 mark amid meltdown in equities

The rupee settled 53 paise lower at 76.13 against the US dollar on Friday amid a significant rise in coronavirus cases in the country and weak domestic equities.

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 75.97. During the day, it lost further ground and finally settled at 76.13, down 53 paise over its previous close.

The rupee had settled at 75.60 against the greenback on Tuesday.

Forex markets in India were closed on April 1 for the annual closing of banks and on April 2 on account of Ram Navami.

On a weekly basis, the currency has depreciated by 124 paise.

"Rupee remained under pressure following broad strength in the dollar and as FIIs continue to remain net sellers in the equity and debt segment," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.

Somaiyaa further said that "from the US, market participants will be keeping an eye on non-farm payrolls data and a weaker-than-expected economic number could keep gains capped for the currency."
According to Sugandha Sachdeva, VP-Metals, Energy & Currency Research, Religare Broking, "the overall trend remains skewed on the downside, amid the uncertainty as to how long this pandemic will last and a convincing breach of the crucial level of 76.25 would further accentuate the fall in rupee towards 77.50 mark."