The rupee on Wednesday opened 5 paise higher at 75.60 against the US dollar following gains in the domestic equity market and weakness in dollar against its major crosses.
According to Motilal Oswal Financial ServicesNSE -3.92 %, risk-on sentiment primarily kept the rupee supported at lower levels. Some sources believe that Indian and Chinese armies have arrived at “mutual consensus” to “disengage” from all the friction points in eastern Ladakh.
The brokerage firm, however, believes that the further appreciation for the rupee could be limited from these levels as the RBI could intervene to buy dollars.
In the recent past, the RBI has been actively intervening to curb the volatility. Latest data released by the RBI showed foreign exchange reserves are now at fresh record levels of $507.64 billion.
For the day, the USDINR (Spot) could quote in the range of 75.20 and 75.80,” said Motilal Oswal Financial Services.
After gaining last week, the dollar has again started to weaken against its major crosses after preliminary manufacturing and services PMI numbers released from the US came in marginally lower.
The greenback was also weighed down by a report that President Trump is supporting another round of stimulus package, a move that could provide relief to millions of Americans still reeling from economic hardship.
More clarity on the stimulus package will primarily trigger a move for the dollar in the next few sessions.
Source:- economictimes.indiatimes.com