Rupee slips 10 paise to 71.43 against US dollar

The rupee declined by 10 paise to settle at 71.43 against the US dollar on Monday, amid heavy selling in domestic equities following increasing concerns over spreading of coronavirus from China to other countries.

Forex traders said the Indian rupee and bonds declined in line with other Asian peers after intensifying coronavirus spread from China to other countries. However, easing crude oil prices supported the domestic unit.

This is the third straight session of loss for the Indian currency during which it has eroded 24 paise.

At the interbank foreign exchange market, the local currency opened on a weak note at 71.51. During the day, the local unit gained some ground and finally settled for the day at 71.43 against the US dollar, down 10 paise over its previous close.

The domestic unit had settled at 71.33 against the American currency on Friday.

"The rupee weakened as the global markets witnessed sell off on back of coronavirus getting spread widely in Central China. Foreign institutional investors pulled out money and rupee witnessed weakness," sad Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.

China continued to reel under deadly coronavirus epidemic on Monday with the death toll due to it sharply rising to 80 amid the country's National Health Commission reporting 2,744 confirmed cases of the fatal affliction till date.

Meanwhile, on the domestic market front, the 30-share BSE index settled 458.07 points, or 1.10 per cent, lower at 41,155.12. Likewise, the broader NSE Nifty closed 129.25 points, or 1.06 per cent, down at 12,119.

Meanwhile, global crude benchmark Brent was trading 3.30 per cent lower at USD 58.69 per barrel, amid expected demand slump over rising Coronavirus cases in China.