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The prospect of a rare current-account surplus following robust foreign inflows & global oil-price collapse will help nudge the rupee higher, analysts say.The prospect of a rare current-account surplus following robust foreign inflows & global oil-price collapse will help nudge the rupee higher, analysts say.
Rupee has stronger link with growth & metrics like current account, balance of payments & global dollar dynamics have marginal impact, says Venkat Thiagarajan.
Forex traders said a positive start of domestic stocks supported the local unit, while sustained foreign fund outflows and concerns over Covid weighed on the local unit.
Forex traders said that besides the encouraging results in vaccine trial, higher opening of domestic equities and a weak greenback in overseas market supported the local unit.
As crude prices tanked, it brought relief for India: The rupee rebounded about 2% from a record low touched last month.
Forex traders said positive start of domestic stocks and improved market sentiments with countries gradually lifting lockdowns supported the local unit.
Forex traders said the rupee is trading in a narrow range as losses in the greenback supported it, while weak domestic equities weighed on the local unit.
The rupee, which opened on a positive note at 74.60, gained further momentum and touched a high of 74.35 against the US dollar.
Stock market indexes crashed 13% as they tripped circuit breakers in the morning. The rupee slid 1.2% after retreating to an all-time low of 76.1550.
In the last one month, the rupee has depreciated by nearly 5 per cent against the dollar but this is unlikely to cause any challenge on the external sector front.