Rupee weakens against USD on heavy selling in domestic equities

Indian rupee weakened against US dollar on Thursday due to a heavy selling in domestic equities, following the anxiety among investors on the rising Coronavirus cases across the country as well as across the world.

Since its inception, SARS-CoV-2, the novel Coronavirus responsible for causing COVID-19 has over 2,19,000 confirmed cases and has caused nearly 9,000 deaths across the world, as of March 18. According to Health Ministry, Coronavirus cases in India have touched 169.

Further, sustained foreign fund outflows also dampened the investor sentiment. Foreign institutional investors (FIIs) sold shares worth Rs 5,085.35 crore on Wednesday, exchange data showed. On the global front, dollar surged against other Asian currencies as investors sold currencies, bonds and stocks in Asia to pile into the world’s reserve currency.

The partially convertible currency is currently trading at 75.01, weaker by 75 paise from its previous close of 74.26 on Wednesday. The currency touched a high and low of 75.0100 and 74.7000, respectively.