Rupee rises 45 paise to 76.42 post-RBI Governor Shaktikanta Das announces measures
The Indian rupee appreciated by 45 paise to 76.42 against the US dollar in intra-day trade on Friday after Reserve Bank of India Governor Shaktikanta Das announced measures to ensure adequate liquidity in the system to ease the financial stress caused by the Covid-19 pandemic
Mumbai: The Indian rupee appreciated by 45 paise to 76.42 against the US dollar in intra-day trade on Friday after Reserve Bank of India Governor Shaktikanta Das announced measures to ensure adequate liquidity in the system to ease the financial stress caused by the COVID-19 pandemic.
Forex traders said positive domestic equities and weakening of the American currency in overseas also supported the rupee.
At the interbank foreign exchange, the rupee opened at 76.59, and then gained further ground and touched a high of 76.42 against the US dollar, registering a rise of 45 paise over its previous close.
On Thursday, the rupee had settled at an all-time low of 76.87 against the US dollar.
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 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.
"Combination of measures to boost liquidity, improve monetary transmission and relax repayment schedules is the need of the hour in which RBI has been proactive and repeatedly insisting that they would do whatever it takes.
"Of course this provides much-needed liquidity and positive message for NBFC especially and a much-elaborated stimulus package is awaited," said Abhishek Goenka, Founder & CEO, IFA Global.
The measures undertaken by the RBI boosted investor sentiment. However, there are concerns over the impact of coronavirus outbreak on the domestic as well as the global economy.
Meanwhile, domestic bourses were trading on a positive note on Friday with benchmark indices Sensex trading 595.79 points higher at 31,198.40 and Nifty up by 169.45 points at 9,162.25.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold equity shares worth Rs 2,920.36 crore on Thursday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 2.05 percent to $28.39 per barrel.
Meanwhile, the dollar index, which gauges the greenback's strength against the basket of six currencies was trading 0.24 percent lower at 99.78.
Among the eight regions of Maharashtra, the Pune region reported the highest 1,483 new COVID-19 cases, followed by 970 cases in the Mumbai region
On 9 February, Maharashtra had reported 2,515 new COVID-19 cases, while 22 deaths were registered on 8 March
Mumbai reported 357 new cases and seven deaths, which took its tally to 7,35,055 and fatality count to 16,022