The rupee posted a second consecutive day of gains on Thursday in the wake of the RBI’s move to increase forex reserves and currency, closing at 79.18 against the dollar from 79.30 a day earlier.
The measures announced by the Reserve Bank of India (RBI) on Wednesday – to diversify and expand the sources of foreign exchange funds to mitigate instability and reduce global spill over – come after the rupee depreciated 4.1 percent against the US dollar. So far in the current financial year
Meanwhile, the Sensex rose 427.49 points, or 0.80 per cent, to 54,178.46 on Thursday and the Nifty rose 143.10 points, or 0.89 per cent, to 16,132.90. “The rupee has been lauded behind the RBI’s move to control the rupee’s decline by allowing banks to increase new FCNR and NRE deposits without reference to the current regulations on effective interest rates from July 7. This has given some leeway to the rupee’s decline but in material terms it will only keep the rupee-less speculators away for a while, ”said Jatin Trivedi, vice president-research analyst at LKP Securities.
Meanwhile, according to a PTI report, the finance ministry has set the dollar exchange rate at Rs 79.90 for calculating import duty from July 8, up from Rs 78.95 a fortnight ago.