Rupee strengthens against US dollar despite Coronavirus concern

Indian rupee strengthened against US dollar on Wednesday, despite concerns over the impact of Coronavirus outbreak on the global economy.

Globally, the virus has infected 1,84,976 people and killed tad more than 7,500 as per the reports from World Health Organisation (WHO). Meanwhile, investor sentiments have improved after Reserve Bank of India (RBI) on Monday hinted at a rate cut at the next Monetary Policy Committee meet on April 3 and announced more liquidity enhancing measures.

RBI announced another round of $2 billion dollar-rupee swap on March 23 and up to Rs 1 lakh crore of long-term repo operations as and when required. Besides, Foreign Institutional Investors (FIIs) sold equity shares worth Rs 4,044.69 crore on Tuesday, exchange data showed. On the global front, US dollar gained after Federal Reserve said it would buy short-term corporate debt directly from companies to help relieve credit markets under strain from the economic impact of Coronavirus epidemic.

The partially convertible currency is currently trading at 74.16, stronger by eight paise from its previous close of 74.24 on Tuesday. The currency touched a high and low of 74.2000 and 73.9250, respectively.