The Indian rupee has appreciated 0.72 percent this week against the US dollar on the back of robust foreign capital inflows in the Indian markets.

Share Market Live

NSE

From 76.19 on last Friday, the USD/INR spot was at 75.64 level today.

On Friday, the Indian currency erased some intraday gains and ended at 75.64 level per dollar, amid buying seen in the domestic equity market. It opened higher by 14 paise at 75.52 per dollar against the previous close of 75.66.

“Today, the rupee opened with a positive note due to weakness in the dollar and coupled with lifetime increase in Indian forex reserves. However, cut in global growth forecast may curb the sharp appreciation in Indian rupee,” said Anuj Gupta, DVP Commodities and Currencies Research, Angel Broking Ltd.

The foreign portfolio investors (FPI) have infused around Rs 23,414 crore in the Indian equity market so far his month which led near 8 percent rally in the benchmark Nifty.

The optimism among investors was fuelled by the countries coming out of the lockdown, global central banks pumping liquidity into the markets, and governments announcing stimulus packages to tackle the economic fallout of the pandemic.

"Despite the rising coronavirus concerns, the global equity market is trading higher reacting to new stimulus packages and unconventional easing. But, there is a lot of uncertainty over the spike in COVID-19 cases. The market is trying to figure out what the impact this is going to have on consumer activity in coming months, and it’s not clear now because we don’t know how bad this spike is going to get,” said Rahul Gupta, Head Of Research - Currency - ‎Emkay Global Financial Services.

Meanwhile, investors will also remain cautious amid escalating geopolitical tensions between India and China.

“FII inflows into local stocks have dragged the USD/INR spot again towards 75.50 zones. So we expect it to trade within 75-76 in the coming days until the Indo-China border issues escalate,” Gupta added.

First Published:Jun 26, 2020 5:13 PM IST