Rupee falls for 2nd day, declines 28 paise to 72.90 against dollar

Extending losses for the second straight session, the rupee on Tuesday fell by another 28 paise to end at 72.90 against the US dollar in line with muted domestic equities.

The rupee opened on a marginally positive note at 72.57 per dollar as against its previous close of 72.62 at the interbank foreign exchange market. It hovered in the range of 72.54 to 72.94 per dollar during the day before ending at 72.90.

The domestic currency has lost 45 paise in the two trading sessions to Tuesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.01 % to 89.83.

On the domestic equity market front, the BSE Sensex ended 2.56 points lower at 51,934.88, while the broader NSE Nifty fell 7.95 points or 0.05 % to close at 15,574.85.

Brent crude futures, the global oil benchmark, rose 2.02 % to USD 70.72 per barrel.

Foreign institutional investors were net buyers in the capital market on Monday as they purchased shares worth Rs 2,412.39 crore, as per exchange data.

Sophie Altermatt, Economist, Julius Baer, said, "On the currency front, the shock caused by the second wave appears to have been well digested. The INR has fully recovered from its April losses in May as risk sentiment rose on the back of declining new daily COVID-19 cases." "The path ahead might be more bumpy as uncertainties around the development of the pandemic situation and the economic recovery could reverse some of the INR strength and keep volatility elevated in the near term. We maintain a Neutral view on the INR." Meanwhile, India reported 1,27,510 fresh COVID-19 cases, the lowest in 54 days, while the daily positivity rate dropped to 6.62 %, according to the Union Health Ministry data updated on Tuesday.

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