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Rupee Opens Strong At 75.86 Per US Dollar

Roshni Agarwal

Rupee in Tuesday's trade (June 23, 2020) opened strong at 75.86 versus its previous close at 76.02 per US dollar. On Monday, rupee moved higher on gains in equity to come near 76 levels.

Nonetheless the gains remained capped due to rising coronavirus cases as well as spike in crude oil rates.

Moody in a report suggested 3.1% contraction in GDP for India for FY20 and the India-China stand-off is likely to aggravate geo-political climate.

We expect the RBI to continue absorbing inflows, accumulating reserves and strengthening it's balance sheet. Inflows related to strategic investments by foreign investors in Jio and month-end exporter selling could cap up side in USD-INR this week. However, continuing reserve accumulation by the central bank should limit downside as well," said Abhishek Goenka, founder and CEO of IFA Global, as forex reserves for the week ended June 12 jump to record high of $507.5 billion

In the bond market, the yield on benchmark bonds stood at 5.879%.

Oil prices continue to remain stable holding on to previous gains as demand is likely seen to pick up and as supplier stick to supply cuts. Brent crude was up 6 cents at $43.14 a barrel at 0046 GMT, after gaining 2.1% on Monday. U.S. oil was up 8 cents at $40.81 a barrel, having risen 1.8% in the previous session.

Meanwhile, shrugging coronavirus situation, Indian equities continue to trade strong with Nifty at 10360 points.

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