Rupee erases gains, but trades higher at 74.10 per dollar

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The Indian rupee continued its downward spiral and plunged 50 paise to 74.27 against the US dollar on Monday as concern over the economic fallout from the coronavirus pandemic outweighed the US Fed’s emergency interest rate cut and the RBI’s liquidity enhancing measures.

The Sensex was up 274.17 points or 0.87% at 31664.24, and the Nifty was up 91.15 points or 0.99% at 9288.55.

“Various central banks have cut rates and pumped in liquidity to help their economies combat the economic damage amid the coronavirus crisis. This may provide some support to the rupee at least for the immediate short term. So, as long as the support of 74.50 mark holds, some recovery may be seen where it can appreciate towards 73.80-73.50 mark.”

“On the contrary, any breach below the mentioned support of 74.50 mark is expected to push the domestic currency further on the downwards trajectory towards 75.50 mark,” she added.

Gold prices inched lower on Tuesday, following a meltdown in precious metals last session, as investors continued to sell assets across markets to keep their money in cash amid heightened panic over the coronavirus pandemic.