The rupee opened 32 paise at 75.30 against the US dollar on Monday in support of the government’s reopening plan for the domestic economy. Foreign exchange traders said that foreign fund inflows, weak US currency and positive opening of domestic equities also boosted investor confidence. The rupee opened at 75.32 in the interbank forex market and then gained further ground to touch 75.30, up from 32 paise at its last time. It closed at 75.62 against the US dollar on Friday.
The government said on Saturday that the lockout will begin across the country in a phased manner from June 1. Announcing the new guidelines, the Ministry of Home Affairs said that full lockout would continue till June 30 in areas identified as COVID-19 inclusion areas across the country, but after the fourth phase phased out restrictions at other places Will go Reliance Securities said in a report that Asian currencies are starting to gain more or less against US collars, backed by less severe reaction from US President Donald Trump.
Meanwhile, in India, the death toll due to COVID-19 rose to 5,394 and according to the Ministry of Health, the number of cases rose to 1.90 lakh. Worldwide the number of cases related to the disease has increased to more than 61.66 lakhs and the number of deaths has increased to 3.72 lakhs. On the equity front, the 30-share BSE benchmark Sensex rose 865.44 points to 33,289.54 and the Nifty opened 244.10 points higher at 9,824.40.
Foreign institutional investors were net buyers in the capital market, as they bought equity shares worth Rs 1,460.71 crore on Friday as per provisional exchange data. The global oil benchmark Brent crude futures fell 0.63 percent to US $ 37.60 a barrel. The dollar index, which estimates the strength of the greenback against a basket of six currencies, fell 0.33 percent to 98.02. Meanwhile, India’s GDP growth reached 3.1 percent in the March quarter, the slowest pace since the global financial crisis that occurred more than a decade ago. In 2019-20, the Indian economy grew by 4.2 percent, the slowest in 11 years.