Mumbai: Beginning with a gush in domestic stock markets and continued foreign capital inflows since the recent past has kept the Indian Rupee strengthened as on Wednesday in the Inter-bank Foreign Exchange market. With this, the Indian Rupee rose 7 paisa reaching to Rs 74.69 per US dollar in early trade against the US dollar. The Indian Rupee has already performed significantly better than other market currencies though it has recorded several lows this year due to economic disturbance.
The stock market started trading in domestic currency with a strong strength at Rs 74.71. Sooner was it strengthened to reach 74.69 per dollar. At this price, it was 7 paisa higher than the previous closing price. Back to Tuesday, the Rupee had closed at 74.76 per dollar in Rupee trade against the US dollar.
Back in April, the Indian Rupee edged closer to 77 a dollar and some analysts even said that the Indian currency may hit 80 a dollar over next few months according to a Livemint report; the rupee hit Rs 76.91 at a day's low before closing at 76.67 on April 22, 2020. Also, according to Bloomberg Economics in April the rupee was said to drop another 4.7% to 80.6 per dollar by June end amid capital outflows as a possibility. Earlier, India's foreign exchange reserves rose to a lifetime high of $517.64 billion in the week ended July 17, 2020 from $ 476.88 billion at end-March 2020. During July, the agency marked the FY21 growth outlook as bleak and showed expectations of the economy to contract 5.3 per cent in FY21 due to which both exports and imports were said to decline for the second consecutive year this fiscal.
According to foreign exchange traders, the market is eyeing the release of the details of the meeting of the US Federal Reserve. This statement can be released till late evening. Meanwhile, the dollar index, which measured the strength of the dollar against the world's six major currencies, rose 0.08 percent to 92.34 points. Brent crude oil futures, considered the global benchmark of crude oil, fell 0.75 percent to USD 45.12 per barrel.