Rupee opens 23 paise up at 75.27 against dollar

The rupee on Wednesday opened 23 paise higher at 75.27 against the US dollar after Prime Minister Narendra Modi on Tuesday announced Rs 20 lakh crore stimulus package to revive the coronavirus-hit economy.

The local currency on Tuesday advanced over 20 paise ahead of inflation and industrial production number that was released after market close.

Data showed India’s industrial output contracted 16.7 per cent in March highlighting the disruption in economic activities due to nationwide lockdown announced on March 25th.

In March, manufacturing output slumped 20.6 per cent while electricity generation shrank 6.8 per cent and mining output grew at 0 per cent, government data showed.

Yesterday, the Prime Minister while addressing to the nation announced a Rs 20 lakh crore stimulus package, in one of the world’s most aggressive bailouts in relation to economic size, equating to about 10 per cent of GDP.

The package, which equals to almost a full year of India’s gross tax revenue collections, also includes the recent monetary easing announced by the Reserve Bank of India.

“For the day, we expect the rupee (Spot) to quote in the range of 75.05 and 75.80,” brokerage Motilal Oswal Financial Services said.

Dollar witnessed some selling pressure at higher levels after data showed inflation contracted 0.8 per cent in April compared to contraction of 0.4 per cent in the previous month.