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Rupee Opens Lower At 75.62; Enough Room To Appreciate To 74 Levels

Roshni Agarwal

Rupee on Thursday (June 4, 2020, 2020) opened lower at 75.62 versus its previous close of 75.47 per US dollar.

The Indian currency amid rise in oil prices is slated to remain steady and may even scale to 74 levels.

The inflows on account of Kotak stake sale as well as Reliance Industries resulted in INR-USD sell-off. Moreover as economies open up and risk on sentiment improves, US dollar continues to weaken against emerging currencies. And in trade on June 3, the safe haven green back fell to its 2-month low.

As per a Bank of America, the Indian rupee has ample room to appreciate. "We're targeting 74 levels (against the dollar) for the Indian rupee," Garg a foreign exchange stratehgist told CNBC's "Street Signs" on Tuesday. Recent risk-on momentum in the markets has had a "prominent impact" on emerging market currencies, especially those that are commodity-driven, he said

In the bond market, the yield on 10-year government bond opened at 5.77% versus its previous closing of 5.77%.Oil prices fell on Thursday on doubts over the output supply being increased if producers fail to stick to production cuts. Brent crude futures fell 1%, or 41 cents, to $39.38 a barrel as of 0157 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 1.6%, or 61 cents, to $36.68 a barrel.

Meanwhile, Indian benchmark indices despite the strength in the Asian stocks fuels by gains on the US index is trading with losses in the pre-opening.

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