Indian rupee
Indian rupee declined by 17 paise to close at its all-time low of 76.44 against the US dollar on Wednesday, tracking weak domestic equities and strengthening of the American currency overseas. Image Credit: Pixabay

Mumba: Paring its early gains, the rupee declined by 17 paise to close at its all-time low of 76.44 against the US dollar on Wednesday, tracking weak domestic equities and strengthening of the American currency overseas.

Forex traders said a firm US dollar index weighed on the local unit. Besides, investor sentiment remain fragile amid concerns over the impact of coronavirus outbreak on the domestic as well as global economy

At the interbank foreign exchange, the rupee opened strong at 76.07, but soon lost ground and finally settled at 76.44, registering a fall of 17 paise over its previous close. During the session, the rupee witnessed high volatility and touched a high of 75.99 and a low of 76.48 against the US dollar. On Monday, the rupee had settled at 76.27 against the greenback.

The forex market was closed on April 14 on account of Baba Saheb Ambedkar Jayanti.

Stocks also reversed early gains to finish in the negative territory on Wednesday as risk-off mood prevailed amid grim prognoses of the economic fallout of the Covid-19 pandemic.

After gyrating over 1,346 points during the day, the 30-share BSE Sensex ended 310.21 points or 1.01 per cent lower at 30,379.81.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.56 per cent to 99.43.

Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities said the rupee traded weak due to the extension of nationwide lockdown till May 3 as this will have an adverse impact on both domestic as well as international workflow.

The nationwide lockdown, which was imposed from March 25 has been extended further till May 3 to control the spread of coronavirus.

Traders said investor sentiments remain fragile amid concerns over the impact of coronavirus outbreak on the domestic as well as global economy.