On a year-to-date basis, the rupee is down 5.13 percent against the US dollar.
Despite the GDP growth rate tumbling to a decade low in Q4 FY20 and a virtual lockdown of nearly two months, US banking major Bank of America has an extremely bullish view on the rupee.
In an interview with CNBC, BOA foreign exchange and rates strategist Rohit Garg said they expect the rupee to surge to 74 levels against the greenback.
“We’re targeting 74 levels (against the dollar) for the Indian rupee,” Garg told CNBC’s “Street Signs” on Tuesday.
The currency has been trading in the green for the last four sessions and was quoting 75.021/$, up 8 paise, at the time of writing this copy. On a year-to-date basis, it is down 5.13 percent against the US dollar.
The resumption of economic activity after a prolonged lockdown period lifted the investor sentiment as benchmark indices rallied for the fourth consecutive session of June 2.
The Nifty50 ended up 1.56 percent at 9,979.10, while the 30-share Sensex benchmark climbed 1.57 percent to 33,825.Meanwhile, investors ignored the sombre GDP growth numbers for Q4 FY20 which came at more than a decade low at 3.1 percent along with country's credit rating downgrade to "Baa3" from "Baa2" by Moody's.