Rupee against dollar: This RBI action may keep Indian currency in 75-76 range, say experts

INR vs USD: Indian rupee (INR) has zoomed 0.26 per cent in the early morning currency trade but due to the regular buying of US dollars by the Reserve Bank of India it may not allow the rupee to consolidate much. Giving reason for this RBI action, experts said that RBI is doing this because of the mismatch between the inflows and economic uncertainty. To keep rupee in control, the RBI is buying dollars heavily.

Speaking on the RBI action not allowing rupee to come below 75 levels, Anindya Banerjee, Deputy Vice President at Kotak Securities said, "There is a big mismatch between the dollar flows and the economic uncertainty. The RBI is buying dollars on an almost regular basis to keep the rupee under control in future if the global economy gets further worsened due to the Coronavirus impact." Banerjee said that in the coming fortnight, the rupee may remain in the range of 75-76 as the RBI is expected to continue buying dollars. He also said that currently, Indian dollar reserve has gone up by almost 24 per cent if we compare it with the December 2019 levels.

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Giving outlook for rupee vs dollar in short-term perspective, Anuj Gupta, Deputy Vice President – Commodities & Currencies Research at Angel Broking said, "Today Rupee is trading on a positive note. It has appreciated by 0.26 per cent. Recovery in the world economy and in Indian equity markets are providing support to the rupee. Weakness in dollar is also supportive. We are expecting it may test 75.10 to 75.00 levels soon."