Rupee opens on flat note against US dollar amid rising Covid-19 cases

The rupee opened on a flat note and was trading in a narrow range against the US dollar in the opening session on Wednesday as rising Covid-19 cases in the US and Europe offset positive sentiments surrounding the progress on the vaccine front.

At the interbank forex market, the domestic unit opened at 74.49 against the US dollar, then gained ground and touched 74.44 against the American currency. In volatile trade, the local unit also touched 74.52 against the greenback.

The rupee on Tuesday appreciated 16 paise to settle at 74.46 against the US dollar.

The Indian currency opened on a flat note as "as rise in Covid-19 cases in Europe and the US offset positive sentiments surrounding the potential vaccine," Reliance Securities said in a research note, adding that the rebound in the US dollar this Wednesday morning in Asian trade could also cap gains.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.02 per cent to 92.40.

"The US and countries across Europe are enforcing stricter measures to tackle the rising second wave of cases. This has stalled the global risk rally as of now. However, with progress on the vaccine front, there are no signs of panic as yet," said Abhishek Goenka, Founder and CEO, IFA Global.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 12.03 points lower at 43,940.68, and the broader NSE Nifty fell 14.10 points to 12,860.10.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 4,905.35 crore on a net basis on Tuesday, according to exchange data.

Brent crude futures, the global oil benchmark, rose 0.07 per cent to $43.78 per barrel.