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Rupee Opens Weak; Currency Seen To Hit Lows Of 80/Dollar

Roshni Agarwal

Rupee in Thursday's trade (June 25, 2020) opened weak by a tad bit in line with weakness in the equities. The home currency opened at 75.74 versus its previous close of 75.72 per US dollar.

"The geopolitical tensions between India and China have brought back the risk-off mood. We don't expect the dispute to escalate and both the sides will contain it. Till then the market will remain skittish across markets due to these geopolitical tensions. Any escalation or uncertainty will lead to a sharp bull-run in USD/INR spot. Until 76 doesn't break in USD-INR spot, it will continue to remain afloat. The immediate support lies around 75.75, and resistance around 76.50," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

Further as per the view of Venkat Thiagarajan , Forex head of RIL who is a veteran trader in currency markets, the rupee may hit record new lows of 80 per US dollar. This is being said due to the growth shock the country would have to suffer amid the corona crisis.

In the bond market, the yield on benchmark bonds stood at 5.918%.

Oil prices in early trade today climbed after declining over 5% on Wednesday due to spike in corona cases globally which is seen to impact demand recovery for fuel.U.S. West Texas Intermediate (WTI) crude futures rose 12 cents, or 0.3%, to $38.13 at 0129 GMT. Brent crude futures climbed 5 cents, or 0.1%, to $40.36, after falling $2.32 on Wednesday.

Meanwhile, Indian equities tracking global markets are sentiment around rising coronacases is down, with Nifty at 10270 points.

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