After closing at 73.48 yesterday, the rupee strengthened by 6 paise to 73.42 against the US dollar in early trade on Wednesday on increased selling of the Us dollar by exporters and banks.
The domestic currency rupee hit a 2-week high of 73.41 against US dollar on Wednesday morning. After closing at 73.48 yesterday, the rupee strengthened by 6 paise to 73.42 against the US dollar in early trade on Wednesday on increased selling of the Us dollar by exporters and banks. The rupee’s gain was attributable to weakness in the dollar against some currencies overseas, forex dealers told PTI adding that a higher opening of domestic equity markets gave some support to the rupee.
Earlier, the domestic equity markets continued their strong rally on Wednesday, tracking positive Asian market cues. The 30-share Sesnex zoomed 380 points on open, while the broader Nifty 50 opened above the 10,700-mark. Infosys share price rallied more than 2%, buoyed by the strong Q2 results announced yesterday.
According to Rushabh Maru, Research Analyst, Anand Rathi Shares and Stock Brokers, the rupee may touch the 75/$ mark by the end of October or mid-November. “For 2018-end, the rupee may touch 77 levels and by end of the current financial year the rupee may weaken to 80 levels,” Maru told FE Online recenlty.
Yesdterday, Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, said the rupee could hit 100 to the dollar over the next few years. In an interview to ET Now, Dr Doom said that India’s fiscal position is not particularly good. “Either India has to increase interest rate meaningfully or has to let the rupee depreciate over time,” Faber told the channel.