Rupee edges lower against US dollar
Mumbai: The rupee today moved lower against the US dollar today, despite strong gains in the domestic equity markets. After opening at 75.53, the rupee moved as much as 75.14 against the rupee before ending lower at 75.62. In comparison, the rupee had closed at 75.59 per dollar in the previous session.
During the day, the rupee traded in the range of 75.14 to 75.67 against the US dollar.
Global oil prices on Monday fell to their lowest levels in 18 years as markets fear the world may run out of storage space.
"There is massive inventory build up as demand has taken a hit while Saudi and Russia disagreement over production cuts has kept supply intact. The tremendous liquidity injection by central banks is seeming to keep global equities afloat," said Abhishek Goenka, Founder & CEO, IFA Global.
Most Asian currencies today ticked higher after a key survey showed factory activity in China returned to growth, even though the global coronavirus crisis showed little signs of slowing.
Meanwhile, the Reserve Bank of India has opened up a wide swath of its sovereign bond market to overseas investors, taking its biggest step yet to secure access to global indexes as the government embarks on a record borrowing plan.
Forex traders said the rupee is trading in a narrow range as the higher opening in domestic equities supported the local unit, while sustained foreign fund outflows and strengthening of the American currency weighed on it.