The rupee reduces losses to end at 76.27 as the dollar weakens

MUMBAI: The rupee slashed initial losses to settle on a flat note at 76.27 against the United States on Monday amid the weakening dollar in the international market.

Forex traders said the rupee is trading in a narrow range as losses in the greenback supported the rupee , while weak domestic equities weighed on the local unit.

In addition, investor confidence was strengthened after the minutes of the central bank's policy meeting revealed that the RBI will use whatever instruments are necessary to revive growth and preserve financial stability.

The Reserve Bank will remain vigilant and will not hesitate to use any instrument, conventional and unconventional, to mitigate the impact of Covid-19, revive growth and preserve financial stability. Reserve Bank of India (RBI) said Governor Shaktikanta Das.

In the interbank currency market , the local currency opened at 76.32, but witnessed strong volatility and touched a low of 76.45 against the US currency.

The domestic unit reduced losses and finally settled at 76.27 against the greenback, up above its previous close.

The rupee had settled at 76.28 against the US dollar on Thursday. Forex market was closed on April 10 on account of Good Friday.

Forex traders said market participants are concerned that a sharp rise in coronavirus cases may weigh on the economy.

The number of deaths worldwide related to the new coronavirus has crossed over 114,000. In India, more than 9,100 cases of coronavirus have been reported so far.

Brent crude oil futures fell 1.08 percent to $ 31.19 a barrel.

"Rupee found some stability on the back of Opec+ cutting down production as market participants had expected heavy cuts beyond 15 million bpd and with 9.7 million bpd cut crude prices will not have strong support to bounce which has helped the rupee to float around 76.30 odd levels," said Jateen Trivedi, senior research analyst (commodity & currency) at LKP Securities.

Members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies announced Sunday that they agreed to reduce production by 9.7 million barrels per day (bpd) in May and June. The reduction in global production by approximately 10 percent is among the deepest cuts ever agreed to by the world's oil producers.

Trivedi further said that going ahead "the lockdown position India is not likely to help the rupee ".

Meanwhile, foreign institutional investors (FII) were net buyers in the capital markets, buying shares worth Rs 1,737.62 million on Thursday, according to provisional data.

In the mercado interno, el barómetro de la EEB de 30 acciones finalizó 469.60 puntos o 1.51 por ciento menos a 30,690.02. Del mismo modo, el NSE Nifty cayó 118.05 puntos o 1.30 por ciento a 8,993.85.

The dollar index, which measures the strength of the dollar against a basket of six currencies, fell 0.08 percent to 99.40.

La rupee se abrió a la baja frente al dólar estadounidense y se consolidó en un rango estrecho antes del importante número de inflación que se dará a conocer esta noche, dijo Gaurang Somaiyaa, analista de divisas y lingotes, Motilal Oswal Financial Services.

Somaiyaa further noted that "volatility for major crosses also remained low as major global market remained shut on account of Easter holidays. We expect the rupee (Spot) to quote in the range of 75.70 and 76.50."

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee /dollar at 76.4577 and for rupee /euro at 82.9153. The reference rate for rupee /British pound was fixed at 94.5420 and for rupee /100 Japanese yen at 70.18.

The currency market will be closed on April 14 because of Baba Saheb Ambedkar Jayanti.