Rupee opens 32 paise up at 75.03 against dollar

The rupee on Wednesday opened 32 paise higher at 75.03 against the US dollar after Prime Minister Narendra Modi on Tuesday asserted that the country will get back its economic growth.

The ongoing recovery in the domestic equity market coupled with weak American dollar and foreign fund inflows also supported investor sentiments.

“Market participants cheered the fact that India’s economy is reopening in phases which could help boost demand. The currency has also got support from the FIIs who have been pouring in funds for the last couple of sessions,” Motilal Oswal Financial Services said.

For the day, the brokerage expects the rupee (Spot) to quote in the range of 74.80 and 75.25.

Dollar remained under pressure against its major crosses as signs of a global economic recovery from the coronavirus pandemic offset concerns over the worst civil unrest in the United States in decades.

US equities are getting support from better-than-expected manufacturing PMI number that was released earlier this week.

Market participants will be keeping an eye on private payrolls, non-farm employment and services PMI number to gauge a view for the dollar.

Pound has been rallying sharply in the past few sessions on signs that Britain might be willing to compromise on sticking points in Brexit negotiations with the EU.