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Published on 31/03/2020 3:27:24 PM | Source: Live Mint

Rupee moves higher against US dollar

Posted in Currency News| #Rupee #US dollar #Currency News

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The rupee today moved higher against the US dollar today, tracking strong gains in domestic equity markets. After opening at 75.53, the rupee moved as much as 75.14 against the rupee before paring some gains. In comparison, the rupee had closed at 75.59 per dollar in the previous session. The rupee traded at 75.55 recently with domestic stock market index Sensex up about 1,200 points.

So far during the day, the rupee traded in the range of 75.14 to 75.63 against the US dollar.

Global oil prices on Monday fell to their lowest levels in 18 years as markets fear the world may run out of storage space. "There is massive inventory build up as demand has taken a hit while Saudi and Russia disagreement over production cuts has kept supply intact. The tremendous liquidity injection by central banks is seeming to keep global equities afloat," said Abhishek Goenka, Founder & CEO, IFA Global.

Most Asian currencies today ticked higher after a key survey showed factory activity in China returned to growth, even though the global coronavirus crisis showed little signs of slowing.

Meanwhile, the Reserve Bank of India has opened up a wide swath of its sovereign bond market to overseas investors, taking its biggest step yet to secure access to global indexes as the government embarks on a record borrowing plan.

Global funds will be able to buy new five-, 10- and 30-year bonds from April 1, the Reserve Bank of India said in a statement late Monday. It also removed caps on some issued debt including the benchmark.

"This is one more step towards bond index inclusion," Mr Goenka added.

Massive selling of Indian equities and bonds by foreign investors has weighed on Indian rupee. The rupee is down about 6% against the US dollar so far this year.

Traders said investor sentiment remains fragile amid concerns over the impact of coronavirus outbreak on the domestic as well as global economy.

In India, about 1,250 coronavirus cases have been reported so far. Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold equity shares worth ₹4,363.61 crore on Monday, according to provisional exchange data. (With Agency Inputs)