The rupee on Tuesday opened 14 paise higher at 75.89 against the US dollar, following some buying in the domestic equity market.
On the domestic front, no major economic data is expected to release but market participants will continue to monitor any statements that come in from the US or China.
Yesterday, the Federal Reserve announced it will start purchasing corporate bonds on Tuesday through the secondary market corporate credit facility. The dollar fell sharply after the announcement and led to an appreciation in major crosses.
We expect the rupee (Spot) to quote in the range of 75.70 and 76.20,” brokerage Motilal Oswal Financial Services said in a report.
Today, market participants will be keeping an eye on retail sales number that will be released from the US. At the same time, Fed Chairman’s testimony will also be important to watch and gauge what other steps the Fed will look to take to support the economy.
The local currency on Monday depreciated by 19 paise to close at a more than six-week low of 76.03 against the greenback.
Weakness in the currency accelerated after IIP data released last weekend came in weaker-than-expectation. India’s IIP contracted 55 per cent YoY in April compared to a revised contraction of 18.3 per cent in the previous month.
The benchmark equity index BSE Sensex traded 1.73 per cent higher at 33,803 in the morning trade following firm global cues.
Source:- economictimes.indiatimes.com