Rupee Closes At 2-Month Low Against The US Dollar

The Indian rupee ended at a two-month low against the US dollar tracking losses in the Indian equities. A stronger dollar also weighed on the domestic currency which closed at 74.11, when compared to Wednesday's close of 73.88 to a dollar, a level last seen on 26 August.

The rupee opened at 74.05 on Thursday and between an intraday high of 73.95 and a low of 74.17.

BSE's Sensex closed 172.61 points or 0.43 percent lower at 39,749.85 while NSE's Nifty 50 was down 58.80 points or 0.50 percent at 11,670.80.

The currency has fallen 3.68 percent so far in 2020.

The US dollar index, a measure of the American currency against a basket of six major currencies, was in the 93.30 region. While the index must have lost some upside momentum on Thursday, there were three consecutive daily advances, including multi-day highs in the 93.60-93.65 band.

The general cautious tone in the global stock markets due to a rise in coronavirus cases in the US and Europe has caused a recent pick up in demand for the US dollar, a safe-haven asset. Concerns over the impact of another wave of the COVID-19 on the global economy and as well as dying chances of a quick deal between Democrats and Republicans over additional stimulus for the US economy has investors seeking refuge in safe-haven assets.