Rupee rises 21 paise to 75.30 against U.S. dollar in early trade

On May 12, the rupee had settled at 75.51 against the U.S. dollar.

The rupee appreciated 21 paise to 75.30 against the U.S. dollar in early trade on May 13 as Prime Minister Narendra Modi’s ₹20 lakh crore economic stimulus package enthused investors.

Forex traders said PM’s economic booster aided sentiments. Besides, a positive opening in domestic equities also supported the local unit.

At the interbank foreign exchange, the rupee opened at 75.31, then gained ground to touch 75.30, registering a rise of 21 paise over its previous close.

On May 12, the rupee had settled at 75.51 against the U.S. dollar.

In a big push to revive the COVID-hit economy, Prime Minister Narendra Modi on May 12 announced massive new financial incentives on top of the previously announced packages for a combined stimulus of ₹20 lakh crore.

Domestic bourses were trading on a positive note on May 13 with the benchmark Sensex up 691.49 points at 32,062.61 and broader Nifty rising 195.80 points to 9,392.35.

Foreign institutional investors were net sellers in the capital market, as they offloaded equity shares worth ₹1,662.03 crore on May 12, according to provisional exchange data.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.07% up at 100.

However, traders said investor sentiment remains fragile amid concerns over the impact of COVID-19 pandemic on the domestic as well as global economy.

Meanwhile, Brent crude futures, the global oil benchmark, fell 1.47% to $29.54 per barrel.

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