Rupee slips 13 paise to 73.15 against US dollar in early
trade
Tue Jan 05 2021
The rupee depreciated by 13 paise to 73.15 against the US
dollar in opening trade on Tuesday tracking the muted opening in domestic
equities.
At the interbank forex market, the domestic unit was trading
in a narrow range. It opened at 73.02 against the US dollar and fell to 73.15
against the greenback, registering a fall of 13 paise over its previous close.
On Monday, the rupee appreciated by 9 paise to close at a
four-month high of 73.02 against the US dollar.
"Uncertainty surrounding the Georgia run-offs and
rising Covid-19 infections could push investors towards the safe haven appeal
of the US dollar and cap gains for the domestic unit," Reliance Securities
said in a research note.
Most Asian currencies were flat against the greenback this
Tuesday morning, it added.
The UK has issued stay-at-home orders for citizens as it
goes into a lockdown which is expected to last until mid-February. The Sterling
fell about 150 pips overnight from close to 1.37, said Abhishek Goenka, Founder
and CEO, IFA Global.
Meanwhile, the dollar index, which gauges the greenback's
strength against a basket of six currencies, fell 0.12 per cent to 89.76.
Traders said market participants remained cautious ahead of
the outcome over the run-off elections in Georgia that will determine control
of the US Senate.
In addition, traders will be eyeing the minutes of the
December Federal Reserve meeting, the US ISM manufacturing and
non-manufacturing data and the US monthly jobs report.
On the domestic equity market front, the 30-share BSE
benchmark Sensex was trading 174.91 points lower at 48,001.89, and the broader
NSE Nifty was down 61.30 points at 14,071.60.
Foreign institutional investors were net buyers in the
capital market as they purchased shares worth Rs 1,843.22 crore on a net basis
on Monday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 0.18 per
cent to $51.00 per barrel.
Source: www.thehindubusinessline.com