Forex merchants reportedly stated the weak point within the rupee was largely resulting from strengthening of the US Dollar against a basket of currencies as traders fled to secure haven dollar amid weakening danger urge for food within the markets.
During the session, the rupee moved between 76.68 and a low of 76.87 against the US greenback. It had settled at 76.44 against the dollar on Wednesday.
The greenback index, which gauges the dollar’s power against a basket of six currencies, rose by 0.29 per cent to 99.75.
Notably, fairness and forex markets are subdued because of the bleak financial outlook each for India and the worldwide economic system amid the coronavirus pandemic.
Recently, International Monetary Fund`s World Economic Outlook (WEO) report presents a darkish image of the world with the worldwide economic system shrinking by Three per cent this 12 months.
Further, with the extension of the nationwide lockdown until May 3, a Barclays report has additionally projected that India`s GDP will stagnate and never develop in any respect through the calendar 12 months 2020.
Equity benchmark indices at the moment ended increased with the Sensex closing up 222.80 factors or 0.73% at 30602.61, and the broader Nifty was up 67.50 factors or 0.76% at 8992.80. During early hours, the Sensex was 135 factors down or 0.44 per cent at 30,245 whereas the Nifty 50 edged decrease by 20 factors or 0.22 per cent at 8,905.
IMF report at the moment stated that Asia’s financial progress this 12 months will grind to a halt for the primary time in 60 years, because the coronavirus disaster takes an “unprecedented” toll on the area’s service sector and main export locations.