The rupee on Monday opened 30 paise lower at 71.65 against the US dollar after the Union Budget disappointed market participants amid escalating fear related to the outbreak of coronavirus.
In the Union Budget, the Finance Minister announced that the fiscal deficit for the current fiscal year could widen to 3.8 per cent compared to previous estimates of 3.3 per cent. For the next year the fiscal deficit could stabilize at around 3.5 per cent of the GDP.
To help finance government spending, the FM set a target for selling stakes in state firms at Rs 2.1 lakh crore for FY21, more than three times the amount expected this year. In the economic survey report released on Friday, the government predicted growth to be rebound to 6-6.5 per cent in the coming fiscal year.
Today, Chinese markets opened lower after its extended Lunar New Year break as investors dumped risky assets in response to rising fears about the spread of a new virus across China.
As per latest report, the death toll from the new coronavirus in China’s Hubei province rose by 56 to 350.
“Today, USDINR pair is expected to quote in the range of 71.50 and 72.05,” Motilal Oswal Financial Services said.
Pound extended its rally on Friday after the BoE decided to keep rates on hold and on signs of a post-election pick-up in growth.
This week, market participants will be awaiting economic numbers from the US and better-than-expected numbers could support the greenback at lower levels.
Source: economictimes.indiatimes.com