Rupee rebounds 48 paise to close at 76.39 post-RBI Governor Shaktikanta Das announces measures
The Indian rupee on Friday settled 48 paise higher at 76.39 against the US dollar, rebounding from an all-time low hit a day earlier, buoyed by RBI measures to prop up the economy reeling under the Covid-19 impact
Mumbai: The Indian rupee on Friday settled 48 paise higher at 76.39 against the US dollar, rebounding from an all-time low hit a day earlier, buoyed by RBI measures to prop up the economy reeling under the Covid-19 impact.
A strong rally in domestic equities also helped in improving forex market sentiment.
At the interbank foreign exchange, the rupee opened at 76.59 and then gained further ground to touch a high of 76.35 against the US dollar.
Representational image. Reuters.
Related Articles
The domestic unit finally settled for the day at 76.39 against the US dollar, registering a rise of 48 paise over its previous close.
On a weekly basis, the Indian unit lost 12 paise or 0.15 percent against the US dollar.
On Thursday, the rupee had settled at an all-time low of 76.87 against the US dollar.
In a much-anticipated move, the RBI announced a slew of measures to infuse liquidity in the financial system including a cut in the reverse repo rate, Rs 50,000-crore targeted long-term repo operations (TLTRO) and refinancing facilities for NABARD, SIDBI and NHB.
Forex traders said these measures announced by Reserve Bank Governor Shaktikanta Das would provide the much-needed liquidity and ease the financial stress caused by the pandemic.
The central bank reduced the reverse repo rate - the rate at which banks park their fund with the central bank - by 25 basis points to 3.75 percent.
This will encourage banks to lend to the productive sectors of the economy.
With regard to other measures, Das said the RBI will begin with giving an additional Rs 50,000 crore through targeted long-term repo operation (TLTRO) to be undertaken in tranches.
Besides, he announced a re-financing window of Rs 50,000 crore for financial institutions like Nabard, National Housing Bank and Sidbi.
Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities, said, "Rupee traded stronger today on the back of Reserve bank of India announcing liquidity measures to boost growth amid slowdown due to Covid-19 lockdown".
The number of cases around the world linked to the new coronavirus has touched nearly 22 lakh. In India, over 13,300 coronavirus cases have been reported so far.
On the equity market front, the BSE Sensex closed 3.22 percent or 986 points higher at 31,589, while the 50-share Nifty advanced 3.05 percent or 274 points to close at 9,267. Nearly Rs 3 lakh crore were added to the market capitalization of BSE-listed companies.
Brent crude futures, the global oil benchmark, rose 0.29 percent to $27.90 per barrel.
Meanwhile, the dollar index, which gauges the greenback''s strength against the basket of six currencies was trading 0.05 percent higher at 100.07.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 76.7408 and for rupee/euro at 83.6541. The reference rate for rupee/British pound was fixed at 95.9853 and for rupee/100 Japanese yen at 71.22.
also read
It’s Raining Pink Money: From temple donations to mangoes, how Indians are getting rid of Rs 2000 notes
The withdrawal of Rs 2000 notes is creating panic. Some are rushing to buy luxury watches and gold; others are donating to temples and spending on mangoes and food delivery
Dollar Detox: ‘Time to ditch the dollar,’ says Cuban President
Cuban President Miguel Diaz-Canel has asked developing countries to dump the US dollar as it would set them free from Washington's 'sanctions, blackmail, aggression, and slander'
Are Rs 2000 notes being withdrawn because of black money? What happens after 30 September?
Confusion prevails over the RBI’s decision to withdraw Rs 2000 notes. While the 30 September deadline has been set, the currency will continue to be valid even after. Then why do we have to exchange the notes? Is it a crackdown on black money and fake currency?