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Rupee Plummets to All-time Low of 76.88 Against US Dollar Amid Rising Covid-19 Cases

The Indian rupee plummeted to an all-time low of 76.88 against the US dollar in opening trade on Wednesday, amid strengthening of the US dollar overseas and rise in coronavirus cases in the country.

On April 16, rupee had slumped to 76.87 against US dollar. Forex traders said the weakness in the rupee was largely due to strengthening of the US dollar against a basket of currencies as investors fled to safe haven greenback amid weakening risk appetite in the markets.

The rupee opened weak at 76.86 at the interbank forex market and then fell further to 76.88, down 5 paise over its last close.

The rupee had settled at 76.83 against the US dollar on Tuesday. "The Indian Rupee could start the session weaker against the US Dollar this Wednesday morning as risk-off sentiments in the markets continues to see investors flee to the safe haven US Dollar," Reliance Securities said in a research note.

The report further noted that "Asian currencies have started weak against the US Dollar this Wednesday morning and will weigh on markets".

Domestic bourses were trading on a positive note with benchmark indices Sensex trading 112.14 points higher at 30,748.85 and Nifty up by 11.50 points at 8,992.95.

Brent crude futures, the global oil benchmark, fell 12.73 per cent to USD 16.87 per barrel.

Moreover, market participants are also concerned that the sharp rise in coronavirus cases could weigh on the economy.

The number of cases around the world linked to the new coronavirus has crossed over 25.51 lakh. In India, nearly 20,000 coronavirus cases have been reported so far.

Foreign institutional investors (FIIs) were net sellers in the capital markets, as they sold shares worth Rs 2,095.23 crore on Tuesday, as per provisional data.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.04 per cent to 100.30.