INR Vs USD: Indian Rupee soared around 0.25 per cent in the early morning trade and hit Rs 75.80 levels against the US dollar (USD). According to the currency experts, Indian currency may further gain lost ground as the US dollar is under huge pressure due to the further spread of the Coronavirus and fast approaching US presidential elections. Experts said that the Reserve Bank of India (RBI) is still buying dollars as it would like to contain Indian currency at around 75.40 per dollar levels.
Speaking on the rupee to dollar deviation, Anindya Banerjee, Deputy Vice President at Kotak Securities said, “Rupee is gaining due to the weakness in dollar as the COVID-19 situation in the US is probably the worst in the world. Apart from this, there is fast approaching US presidential elections that is also putting the dollar under stress. However, the RBI is still buying dollars from the markets and hence I expect that rupee may not gain beyond 75.40 per dollar levels. On the upper side, rupee may not go beyond 76.60 levels.”
See Zee Business Live TV streaming below:
Anuj Gupta, Deputy Vice President – Commodities & Currencies Research at Angel Broking said, “Today, Indian Rupee appreciated by 0.39 per cent. In last the 5 days, it appreciated almost 0.95% from a level of 76.36 to 75.80 level today. Weakness in Dollar, strength in equity market are some factors that is making Indian Rupee get more firm. We are expecting that Indian Rupee may appreciate further to test 75.50 to 75.30 levels.”
On why RBI is still buying dollars and not allowing rupee to strengthen further, Anindya Banerjee said, “There is still uncertainty in the global economy due to the second wave of COVID-19. RBI is buying dollars keeping that uncertainty in mind because more dollar reserves means a more stable economy in case the uncertainty prevails further.”