Rupee falls to 74.88 against dollar on COVID worries

Mumbai: The rupee pared its initial gains to close marginally down by 1 paisa at 74.88 against the US dollar on Tuesday due to worries that the alarming surge in COVID-19 cases could derail the economic recovery in the country.

At the interbank forex market, the domestic unit opened at 74.65 against the US dollar, but lost ground to close at 74.88 against the US dollar.

During the session, the local unit witnessed an intra-day high of 74.64 and a low of 74.98 against the greenback.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 per cent to 91.03.

Traders said the local unit ended in the red as investors were concerned that the surge in coronavirus infections could result in stricter lockdowns, which in turn could hamper the country's economic recovery.

India's total tally of COVID-19 cases climbed to 1,53,21,089 with 2,59,170 new coronavirus infections being reported in a day, while active cases surpassed the 20-lakh mark, according to the Union Health Ministry data updated on Tuesday.

Meanwhile, global crude oil benchmark Brent futures rose 0.77 per cent to USD 67.68 per barrel, despite concerns about the impact on oil demand going forward due to rising Coronavirus cases in India.