Rupee settles 5 paise lower at 75.71 against US dollar

At the interbank forex market, the rupee opened strong at 75.72 and gained marginal ground to finally closed at 75.71, down 5 paise over its last close.

The rupee depreciated 5 paise to settle at 75.71 (provisional) against the US dollar on Wednesday, as market participants were concerned about rising tensions between the US and China amid coronavirus pandemic.

During the session, the local unit witnessed an intra-day high of 75.57 and a low of 75.74. (REUTERS)

Forex traders said rupee was trading in a narrow range as positive domestic equities, rising optimism about a potential coronavirus vaccine and a revival of business activities were offset by a flare-up in US-China tensions.

Moreover, strengthening of the American currency overseas also weighed on the domestic unit.

At the interbank forex market, the rupee opened strong at 75.72 and gained marginal ground to finally closed at 75.71, down 5 paise over its last close.

It had settled at 75.66 against the US dollar on Tuesday.

During the session, the local unit witnessed an intra-day high of 75.57 and a low of 75.74.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.17 per cent to 99.08.

“US President Donald Trump has already said that he is preparing against China over his efforts to impose national security on Hong Kong. The global growth is already in doldrums due to COVID-19, worsening relations between these two nations will further hobble growth,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.