Broad weakness in US dollar and firm domestic equity markets boosted the rupee
Global risk sentiment improved as lockdown restrictions eased world over, traders said
Indian rupee today today edged higher against the US dollar amid broad weakness in the US currency and higher domestic markets. The rupee today opened at 75.69 per dollar and moved to 75.64 at day's high as compared to previous close of 75.96. Indian forex and stock markets were closed on Monday due to a public holiday. The Sensex was up about 300 points in latest trade.
Global risk sentiment improved as lockdown restrictions eased world over, traders said.
"This truncated week is likely to be a week where USD-INR price action is driven by flows. Bharti Telecom, parent company of Bharti Airtel is expected to offload a 2.75% stake worth $1 billion via a block deal and we could see inflows to fund the purchase over the next couple of days. A net inflow of $250 million is also expected on account of MSCI semi annual index rebalancing which will take effect from 1st June onwards," said Abhishek Goenka, founder and CEO, IFA Global.
Other Asian currencies were also stronger against the USD. The US dollar index, which measures the greenback against a basket of six other key currencies, was up 0.25% to 99.64.
"Overall risk sentiment is positive. The rupee may trade in the range of 75.50 to 75.95 today," he added.
Year to date, the rupee is down over 6% against the US dollar amid a flight to the safety of the greenback amid the coronavirus crisis. Outflows from Indian markets also weighed on the domestic currency.
Foreign portfolio investors offloaded equities worth ₹1,353.90 crore in the capital market on Friday, provisional exchange data showed.