Rupee slips 48 paise to 76.08 against US dollar in early trade amid coronavirus scare

The Indian rupee fell 48 paise to 76.08 against the US dollar in opening trade on Friday, as investors braced for a prolonged period of uncertainty as coronavirus cases witnessed a sharp rise across the world and in India.

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

The rupee opened weak at 75.97 at the interbank forex market and then fell further to 76.08, down 48 paise over its last close.

The rupee had settled at 75.60 against the US dollar 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.

According to Reliance Securities "rising coronavirus cases in India and globally could also weigh on sentiments as investors could continue to buy the safe haven Dollars".

There are more than one million declared cases of coronavirus worldwide and in India, the tally of confirmed coronavirus cases has crossed the 2,000-mark.

Brent crude futures, the global oil benchmark, fell 3.24 per cent to USD 28.97 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, as they sold shares worth Rs 1,116.79 crore on Wednesday, as per provisional data.

Domestic bourses opened on a negative note with benchmark indices Sensex trading 353.48 points down at 27,911.83 and Nifty down 118.25 points at 8,135.55.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.03 per cent to 100.20.