Uptick in Covid cases weigh on Indian rupee, trades at 20 against dirham

Staff Report

Last updated on May 11, 2021 at 10.28 am

The Indian rupee fell 18 paise to 73.53 against the US dollar (20.03 against the UAE dirham) in opening trade on Tuesday due to weaker domestic equity market and strengthening of the US currency.

In addition, concerns over rising Covid-19 cases also weighed on the currency.

According to India’s Ministry of Health & Family Welfare (MoH&FW), Monday’s spike of 329,942 new Covid-19 infections and 3,876 fatalities pushed the country's overall caseload to 22,992,517 and total death toll to 249,992.

The active Covid-19 cases in the country stand at 3,715,221.

In the domestic equity market, the 30-share BSE Sensex was trading 336.74 points or 0.68 per cent lower at 49,165.67. Similarly, the broader 50-share NSE Nifty slipped 97.10 points or 0.65 per cent to 14,845.25.

The domestic unit started on a weaker note against the greenback tracking decline in Asian shares and currencies on concerns over rising US inflation expectations, Reliance Securities said in a research note.

Most of the Asian currencies are trading weaker against the UD dollar and could weigh on sentiments, the note said.

Markets would also await domestic Index of Industrial Production (IIP) and Consumer Price Index (CPI) data, which would be released this week, it added.