Rupee drops 52 paise at 74.87 against USD, gold jumps Rs 411

Mumbai, Apr 19 (PTI): The rupee plunged by 52 paise to close at 74.87 (provisional) against the US dollar on Monday amid a lacklustre trend in the domestic equities as investors fretted over the prospects of lockdown in some parts of the country amid a surge in COVID-19 cases.
At the interbank forex market, the local unit opened at 74.80 against the greenback and traded in the range of 74.79 to 75.05 during the day.
The rupee finally ended at 74.87 against the American currency, registering a fall of 52 paise over its previous close. On Friday, the rupee had settled at 74.35 a dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.49 per cent to 91.11.
Forex traders said the surge in coronavirus infections over the weekend increased the risk of more broadbased lockdowns.
Gold rallied by Rs 411 to Rs 47,291 per 10 gram in the national capital on Monday reflecting strong buying in the global precious metal and rupee depreciation, according to HDFC Securities.
In the previous trade, the precious metal had closed at Rs 46,880 per 10 gram. Silver also gained Rs 338 to Rs 68,335 per kilogram from Rs 67,997 per kilogram in the previous trade. The Indian rupee slumped 52 paise to 74.87 against the US dollar in opening trade on Monday.
In the international market, gold was trading with gains at USD 1,787 per ounce and silver was quoting marginally higher at USD 26.08 per ounce.
“Gold prices rallied on weaker dollar and fall in US bond yields,” according to HDFC Securities, Senior Analyst (Commodities), Tapan Patel.
Navneet Damani, VP Commodities Research, Motilal Oswal Financial Services, “Gold continues to edge higher, hovering near a seven-week peak hit in the previous session, as a softer dollar and a retreat in US Treasury yields boosted demand for the bullions.