US Treasury bonds yields fell modestly morning after weekly applications for unemployment benefits surged to an all-time high.
The rupee, which opened on a positive note at 75.90, settled for the day with gains of 78 paise at 75.16 against the American currency.
The rupee which opened on a positive note at 75.90, gained further momentum and touched a high of 75.10 against the US dollar, registering a rise of 84 paise over its previous closing.
The dollar was weighed down against its major crosses ahead of the US Senate vote on $2 trillion stimulus package.
The Australian and New Zealand dollars, both of which are closely liked to the global commodity trade, fell against their US counterpart.
Panicked investors fearful about the coronavirus pandemic had liquidated almost everything for dollars.
The yen, which investors typically snap up as a safe haven in times of financial market stress, fell nearly 10% against the dollar this month, as pandemic fears spurred a stampede into the refuge of the world's most powerful currency.
The safe-haven dollar, which had pulled back from recent peaks, was now steady against the euro at $1.0789.
Forex traders said the rupee which started the day on a positive note, witnessed heavy volatility.
Ongoing global risk-off sentiment and steep monetary easing will pressure the rupee weaker.
Continued fund outflow could disturb the overall sentiment in the market as it is not only restricted to the equity segment but also the debt segment.
Market reaction was mixed to the US Federal Reserve's extraordinary array of programmes, its third emergency move this month.
Foreign portfolio investors (FPI) have offloaded over Rs 1 lakh crore this month.
FPIs have pulled out over Rs 1 lakh crore from the domestic capital markets in March so far.
The dollar rose against sterling toward its strongest since at least 1985.
The fall in domestic equities has added extra pressure on our currency.
The last time forex reserves declined was in the week to September 20, 2019, when it had fallen by $388 million to $428.58 billion.
The Indian unit finally settled at 75.20, down 8 paise against the US dollar.
The rupee on Friday surged against the US dollar following some selling in American currency by banks and exporters.
The dollar greenback has gained 4.5% against a basket of currencies this week so far, its best since 2008.
The rupee has weakened 3 per cent since the beginning of March.
The domestic unit depreciated nearly 80 paise to record low of 75.02 per dollar against the previous close of 74.23.
Sterling teetered near the lowest since at least 1985 against the greenback.
Foreign portfolio investors (FPIs) have withdrawn nearly Rs 70,000 crore on a net basis from the Indian markets in March so far.
The domestic unit finally finished at 74.26, down 2 paise over its previous close.
Importers like South Africa and Turkey haven’t been spared either.
US dollar saw some strengthening as investors sought the most liquid currency.
The pound and safe-haven yen made the best efforts at recovery, but only managed to recoup fractions of their losses.
Forex traders said the Indian rupee which started the day on a positive note, witnessed heavy volatility amid fears that the rate cut by the Reserve Bank would not be sufficient to boost market sentiments.
USDINR is expected to trade in the range of 74.80-73.80.
The rupee on Tuesday opened 12 paise higher at 74.15 against the dollar following a steep fall in crude oil prices.
Forex traders said the fall in the domestic unit was in line with other Asian peers amid mounting fears of a coronavirus-led economic slowdown.
The rupee fell against the US dollar after the Federal Reserve cut interest rates to near zero per cent in an emergency move amid the economic impact of the coronavirus outbreak.
The U.S. Federal Reserve cut rates to a target range of 0% to 0.25% on Sunday, U.S. time, and said it would expand its balance sheet by at least $700 billion in coming weeks.
Market veterans in Mumbai believe the odds on a V-shaped recovery appear rather long, especially since fiscal and monetary measures often work with a lag.
The central bank is estimated to have sold about $1.5 billion, one of the largest interventions lately, four people with direct knowledge of the matter told ET.
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