Profit

Rupee Rebounds From New Five-Month Low Against Dollar: 10 Points

Analysts say the Reserve Bank of India's move on the key interest rates and comments on liquidity provided support to the currency markets.

 Share
EMAIL
PRINT
COMMENTS
Rupee Rebounds From New Five-Month Low Against Dollar: 10 Points

Analysts expect the currency to move in a narrow range in the near term

The rupee rose as much as 18 paise - or 0.25 per cent - against the US dollar on Thursday, regaining some ground from a fresh five-month low of 71.35 touched on Wednesday. Analysts say the Reserve Bank of India's move on the key interest rates and comments on liquidity provided support to the currency markets. After opening higher at 70.80 against the US currency, the rupee climbed to 70.72 at the strongest point by afternoon. It was last seen trading at 70.84 against the greenback.
Here are 10 things to know:
  1. Domestic stock markets registered mild gains amid cautious trade on Thursday, with the S&P BSE Sensex gaining over 200 points at day's high and the broader NSE Nifty benchmark trading near the 10,900 mark.
  2. In its third bi-monthly policy review of 2019-20 on Wednesday, the RBI's Monetary Policy Committee (MPC) cut the repo rate - the key interest rate at which it lends short-term funds to commercial banks - by 35 basis points to a nine-year low of 5.40 per cent. 
  3. It lowered its economic growth forecast to 6.9 per cent from 7 per cent for the current fiscal year, and said it sees inflation remaining inside its target range over a 12-month horizon.
  4. The RBI highlighted that liquidity in the system was in a large surplus over the past two months.
  5. Analysts expect the currency to move in a narrow range in the near term. "The RBI and government are making a concerted effort to push growth. The worst of expectations are already factored in," forex advisory firm IFA Global said in a note.
  6. Foreign fund outflows and rising crude oil prices weighed on the rupee.
  7. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 383.66 crore on Wednesday, provisional data from the NSE showed.
  8. Crude oil prices jumped by more than $1.5 a barrel on Thursday, recovering half of the nearly 5 per cent losses in the previous session, on expectations that lower prices may lead to production cuts. Brent crude futures - the global benchmark for crude oil - rebounded to $57.75 a barrel at one point on Thursday, up 2.7 per cent from their previous close.
  9. The dollar index - which gauges the greenback against six peers - was flat in afternoon.
  10. The rupee is expected to move in a range of 70.65-71.10 in the near term, and a close below 70.50 could cause the current upmove to lose steam, IFA Global added.




Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................

Top