After weakness in domestic stock markets and rising greenback against its big crosses, the rupee on Monday opened 61 paise down at 75.71 against the US dollarNSE -8.61 per cent.
Over the last couple of sessions, the US dollar grew after safe haven buying as confusion escalated after the U.S. President threatened to enforce new tariffs upon China. US President Donald Trump threatened to increase tariffs on China to retaliate for the spread of coronavirus, renewing fresh concerns that trade tensions would destroy an economic recovery.
On the domestic front, market participants should keep an eye on inflation and the amount of industrial output, to be published next week. There are fears that the amount of industrial output will be disappointing and that could weigh down the rupee.
"Market volatility may be limited to a range ahead of the launch of the stimulus package which is anticipated in the immediate future.
Today market participants will keep an eye on the EU economic forecast report and weak figures could weigh down the currency.
The local currency has been strengthened by 57 paises to finish on Thursday at a one-month high of around 75.10 per US dollar. On Friday, Forex market closed because of Maharashtra Day.
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