Rupee opens 5 paise higher at 73.08 against the US dollar

The US dollar inched up in early Monday trade in Asia as riskier currencies slipped after negotiation on a U.S. stimulus package ran into resistance and as the yuan dropped after China’s central bank took a measure seen as aimed at curbing its str...

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Dollar fell against its major crosses after the US President said talks with Congress had restarted on targeted fiscal relief, after calling off negotiations earlier this week.
MUMBAI: The rupee opened 5 paise higher on Monday at Rs 73.08 against the US dollar, tracking gains in the domestic market and some weakness in the dollar index

The local currency had strengthened by 8 paise on Friday after the Reserve Bank of India decided to keep benchmark interest rate unchanged.

The Reserve Bank of India on Friday kept the repo rate unchanged at 4 per cent but maintained an accommodative stance, implying more rate cuts in the future if the need arises to support the economy hit by the Covid-19 crisis.


On the domestic front, all eyes are set on whether the government will unveil another round of stimulus measures to help businesses tide over the crisis triggered by the pandemic.

For today, brokerage firm Motilal Oswal expects the rupee to extend its gains and in the next couple of sessions could test levels of 72.70 and on the higher side resistance would be capped at 73.25.

Dollar fell against its major crosses after the US President said talks with Congress had restarted on targeted fiscal relief, after calling off negotiations earlier this week.
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This week, market participants will be keeping an eye on a number of economic events that will be released from the US.

Meanwhile, the US dollar inched up in early Monday trade in Asia as riskier currencies slipped after negotiation on a U.S. stimulus package ran into resistance and as the yuan dropped after China’s central bank took a measure seen as aimed at curbing its strength.

On Friday, US President Donald Trump offered a $1.8 trillion coronavirus relief package in talks with House Speaker Nancy Pelosi - moving closer to Pelosi’s $2.2 trillion proposal. However, his offer drew criticism from several Senate Republicans, many of whom are uneasy about the nation’s growing debt and concerned a deal would cost Republicans support in the upcoming presidential election, denting the risk-on mood, Reuters reported.
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