Indian rupee rose sharply against the US dollar today, tracking strong gains in domestic equity markets. After opening at 75.88 per dollar, the rupee moved to 75.09 at day's high, as compared to the previous close of 76.10. Investor sentiment was supported on announcements of stimulus measures by many governments across the globe to combat the impact of coronavirus on the economy. Forex market was closed on Wednesday on account of Gudi Padwa.

So far during the day, the rupee traded in the range of 75.09 to 75.96 per dollar during the day, before settling higher at 75.15.

Domestic stock market benchmark Sensex surged over 1,400 points today after posting its best gain in over a decade in the previous session. The US Senate has passed a $2 trillion virus relief bill, boosting equity market sentiment across the globe.

The rupee had hit a record low of 76.32 earlier this week.

Finance minister Nirmala Sitharaman today unveiled a 1.70 lakh crore economic package involving free foodgrain and cooking gas to poor for the next three months, higher wages to rural workers and measures to boost liquidity of employees as part of measures to ease the economic impact of lockdown.

In India, more than 600 coronavirus cases have been reported so far.

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold equity shares worth 1,893.36 crore on Wednesday, according to provisional exchange data.

Meanwhile, the dollar index, which gauges the greenback's strength against the basket of six currencies, was trading 0.26% lower at 100.79.

In a recent report, Bank of America Securities said RBI has a strong dollar arsenal to defend the rupee. In March, RBI has done two tranches of dollar-rupee swaps of $2 billion each as the rupee was falling sharply against the US dollar. This had the forex reserves falling for the first time in 25 weeks. For the week to March 13, the RBI's forex reserves fell $5.35 billion to $481.89 billion. In the week before, the forex kitty was at an all-time high of $487.23 billion. (With Agency Inputs)

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