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Rupee jumps 53 paise to 73.07 amid weak dollar, positive equities

The domestic unit opened at 73.18 per dollar at the interbank forex market, and gained further ground to touch 73.07, registering a rise of 53 paise over its previous close of 73.60 against the US dollar

twitter-logoBusinessToday.In | September 1, 2020 | Updated 12:22 IST
Rupee jumps 53 paise to 73.07 amid weak dollar, positive equities
Domestic unit also gathered momentum after the apex bank, Reserve Bank of India announced various steps to ease pressure on liquidity

Indian rupee, the local currency strengthened 53 paise to 73.07 per dollar on Tuesday's in opening deals, supported by weak American currency and positive domestic equities.

The domestic unit opened at 73.18 per dollar at the interbank forex market, and gained further ground to touch 73.07, registering a rise of 53 paise over its previous close of 73.60 against the US dollar.

"The rupee strengthened post the initial weakness as RBI said a stronger rupee would help tone down inflationary pressure," said Abhishek Goenka, Founder and CEO, IFA Global.

Domestic unit also gathered momentum after the apex bank, Reserve Bank of India announced various steps to ease pressure on liquidity. The Reserve Bank on Monday announced a host of steps, including term repo operations totalling Rs 1 lakh crore in mid-September to ease pressure on the liquidity and maintain congenial financial conditions with a view to ensuring sustainable recovery of economic growth.

Moreover, financial sector regulators, including the RBI and Sebi, on Monday reaffirmed their commitment to continue co-coordinating on various initiatives to strengthen the financial sector.Meanwhile, the dollar fell after US Federal Reserve's new policy framework suggested that interest rates would remain low for some time. The dollar index continued downward momentum and slipped to multi-year lows against the basket of Asian currencies.

On weak April-June gross domestic product (GDP) data, Goenka said "India Q1 GDP came in at (-) 23.9 per cent against expectations of (-) 19 per cent. Q1 included months when the country was in a state of lockdown. Therefore, the print does not matter as much now as the high frequency data does."

On the domestic equity market front, the 30-share BSE benchmark  Sensex was trading 168 points higher at 38,796 and Nifty was trading 66 points higher at 11,453. Equity market was trading volatile today, as investors eyed on announcements from Supreme court hearing for AGR and Interest waiver case as well as on loan moratorium.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,395.49 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 680.88 crore in the Indian equity market on Monday, according to exchange data.

Oil price moved higher after the recent selloff post Hurricane Laura as producers continued to put more efforts to restore operations. Brent crude futures, the global oil benchmark, rose 1.08 per cent to USD 45.77 per barrel.

Worldwide, there were 256 lakh confirmed cases and 8.54 lakh deaths from COVID-19 outbreak. Meanwhile, India reported 78,512 new COVID-19 infections, taking the death toll to 64,617 and total coronavirus cases to 36.21 lakh as of Monday.

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