Forex traders said positive domestic equities, sustained foreign fund flows, revival of business activities and weak US dollar supported the local unit, but there were still a slew of risks, including US-China trade tiff, that weighed on the currency.
Forex traders said positive domestic equities, sustained foreign fund flows, revival of business activities and weak US dollar supported the local unit, but there are still a slew of risks, including US-China trade tiff and concerns that it may jeopardise the Phase-1 deal.
Forex traders said positive domestic equities, weak American dollar and foreign fund inflows also supported investor sentiments.
Forex traders said investors are awaiting the country's gross domestic product data for the January-March quarter, due later in the day, for further cues.
Forex traders said the rupee traded in a narrow range as positive domestic equities and improving risk appetite were offset by a flare-up in US-China tensions.
Forex traders said rupee was trading in a narrow range as positive domestic equities, rising optimism about a potential coronavirus vaccine and a revival of business activities were offset by a flare-up in US-China tensions.
At the interbank foreign exchange, the rupee opened at 75.69, then gained ground and finally settled for the day at 75.66, registering a rise of 29 paise over its previous close.
Forex traders said weak domestic equities, strengthening American currency overseas, rising coronavirus cases in the country and US-China trade tensions also weighed on the local unit.
Besides, market participants said the extension of the nationwide lockdown could weigh on the economic outlook of the country.
Forex traders said while positive domestic equities supported the local unit, market participants were concerned about the impact of spiking coronavirus cases on the economy.
Forex traders said the rupee is trading in a narrow range as positive domestic equities supported the local unit, while sustained foreign fund outflows and concerns over coronavirus outbreak weighed on the local unit.
Forex traders said investor sentiment strengthened after the RBI said it would undertake additional purchase of government securities through open market operations (OMO).
The relentless selling by FIIs has contributed to the fall of rupee.
Forex traders said the decline in the rupee was largely due to sharp drop in oil prices and stronger greenback which edged higher past the 100 level mark.
Forex traders said positive domestic equities and weakening of the American currency in the overseas also supported the rupee.
Forex traders said the weakness in the rupee was largely due to strengthening of the US Dollar against a basket of currencies as investors fled to safe haven greenback amid weakening risk appetite in the markets.
Forex traders said firm US dollar index weighed on the local unit. Besides, investor sentiments remain fragile amid concerns over the impact of coronavirus outbreak on the domestic as well as global economy.
The Reserve Bank of India (RBI) on Friday cut benchmark interest rate by 75 basis points to 4.4 percent. The central bank also reduced the cash reserve ratio (CRR) of all banks by 100 basis points to 3 percent with effect from March 28 for 1 year.
Among various welfare measures, Sitharaman announced Rs 1.70 lakh crore Pradhan Mantri Gareeb Kalyan scheme to help the needy and said that 80 crore poor people will to get 5 kg wheat or rice and 1 kg of preferred pulses for free every month for the next three months.
Over the short-term horizon, the ongoing global risk-off sentiment and likely steep monetary easing will pressure the rupee weaker, although this would be partially counteracted by a sharp improvement in India's terms of trade due to the plunge in oil prices as a result of the ongoing oil price war.
The domestic unit had closed at 75.12 against the US currency on March 19.
Seeing the heavy rush for the US dollar among participants, the RBI announced liquidity measures such as buy-sell swap of USD 2 billion to increase dollar availability with banks and ease pressure on the rupee.
While Reserve Bank of India Governor Shaktikanta Das has said reviving growth was a 'national objective' in coordination with the government, the latest budget provided only minimal support to the slowing economy.
After a terrible 2018, losing almost 10%, the rupee - in line with a sell-off in other emerging market assets - fell 2.6% in 2019, largely due to an escalation in the U.S.-China trade war that pushed investors to shelter in U.S. assets.
Local gold futures hit an all-time high of 41,096 rupees ($570.05) per 10 grams, taking their gains to more than 5% in 2020 after rallying nearly 25% in 2019.