Rupee drops by 12 paise to Rs 73.42 against US dollar on Covid worries
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The rupee pared its initial gains to close down by 12 paise at 73.42 against the US currency on Tuesday amid concerns that rising COVID-19 cases and subsequent lockdowns in some states may hurt the economic recovery. Investors were also cautious ahead of thRupee drops by 12 paise to Rs 73.42 against US dollar on Covid worries
The rupee pared its initial gains to close down by 12 paise at 73.42 against the US currency on Tuesday amid concerns that rising COVID-19 cases and subsequent lockdowns in some states may hurt the economic recovery. Investors were also cautious ahead of the RBI policy statement to be released on Wednesday. Besides, gains in crude prices and a stronger dollar overseas weighed on the rupee sentiment. «Rupee continued to trade in a narrow range for the third successive session despite volatility in domestic equities. Market participants remain cautious ahead of the important RBI policy statement that will be released on Wednesday,» Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services, said. The expectation is that the central bank could keep rates unchanged but commentary will be keenly watched that could trigger volatility for the currency, Somaiyaa said. "We expect the USDINR (Spot) to trade sideways with a positive bias and quote in the range of 73.20 and .. Read more