new Delhi. The rupee strengthened five paise to close at 75.46 against the US dollar on Wednesday. Investors' sentiments have been strengthened by the announcement of the government's financial package. According to foreign exchange traders, Prime Minister Narendra Modi's economic stimulus package of Rs 20 lakh crore has increased the confidence of investors in the domestic economy. However, concerns about the corona virus have kept investors from taking risks and, overall, the rupee has gained a limited upside.
During trading in the interbank foreign exchange market, the rupee hit a day's high of 75.30 and a day's low of 75.50. The rupee had closed at 75.51 against the US dollar on Tuesday.
Rahul Gupta, head of research (currency) at MK Global Financial Services, said the government's announcement of economic stimulus had a positive impact on the rupee. However, risks remain globally and there is no clarity on the government spending plan. Gupta further said that positive signals may lead to appreciation in the rupee, but it will be short-lived, as concerns about the corona virus still remain.
Devarsh Advocate, principal advisor at HDFC Securities, said that at first sight, the economic relief package and signs of improvement seem important, but only if the details are known will the picture come true.
This post was published on May 13, 2020 8:03 pm
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