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Rupee appreciates considerably against US dollar on Tuesday
Mar-24-2020

Erasing all of its initial losses, Indian rupee appreciated considerably against the US dollar on Tuesday, driven by weakening of the greenback in overseas markets. Investors’ sentiment improved after the Reserve Bank said that it will conduct Rs 1 lakh crore of short-term variable repo auction to boost liquidity. The first tranche of term repo worth Rs 50,000 crore was conducted on March 23, while the second tranche of the same amount will be conducted on March 24. Some optimism also came after Finance Minister Nirmala Sitharaman stated that the government is preparing an economic package which will be announced soon in a bid to tackle the economic fallout affecting the Indian economy due to coronavirus pandemic. Splendid recovery in domestic equity markets also supported the forex sentiment. On the global front, dollar slipped for a second consecutive day on Tuesday after the U.S. Federal Reserve unveiled fresh measures to supply precious liquidity into funding markets, sending risky currencies such as the Australian dollar soaring.

The last traded price of rupee was 75.94, 26 paise stronger from its previous close of 76.20 on Monday. The currency touched a high and low of 76.40 and 75.94 respectively. The reference rate for the dollar stood at 75.88 and for Euro stood at 81.54 on March 23, 2020. While the reference rate for the Yen stood at 69.04, the reference rate for the Great Britain Pound (GBP) stood at 88.75. 

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