The rupee drops 50 paise to 72.74 against the US dollar after new cases of coronavirus emerge

MUMBAI: The rupee reduced all its initial earnings and established 50 paise at 72.74 (provisional) against the American dollar on Monday after two new cases of coronavirus detected in India.

Forex traders said the Indian rupee that started the day on a positive note, witnessed strong volatility and finally resolved with significant losses after two more positive cases were reported in the country.

The Ministry of Health said Monday that two more positive cases of the new coronavirus have been reported, one in Delhi and one in Telangana.

In the interbank currency market, the local currency opened at 72.09. During the day he saw a maximum of 72.04 and a minimum of 72.74 against the US currency.

The national unit was finally set at 72.74 against the dollar, 50 percent less than its previous closing price.

The local unit had settled at 72.24 against the dollar on Friday.

This is the second consecutive fall session for the domestic unit during which it has depreciated in 113 countries.

Rupee witnessed the highly volatile trading session, it was the only losing currency among Asia, after the government agency said the nation has found two new cases of coronavirus patients, said VK Sharma, director of PCG and market strategy of capital, HDFC Securities.

Sharma also said that the spot dollar rupee is expected to continue under pressure amid weaker economic data and foreign cash flows.

Meanwhile, the number of deaths worldwide in the new outbreak of coronavirus exceeded 3,000 on Monday, as China reported 42 more deaths.