Cases in India have risen exponentially, and fiscal deficit concerns surrounding the stimulus package will weigh on the appetite going forward, says Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.
Indian rupee erased early gains and trading lower at 75.70 per dollar, amid positive domestic equity market.
It opened 7 paise higher at 75.57 per dollar versus previous close of 75.64.
At 11:08 IST, the Sensex was up 213.60 points or 0.71% at 30409.77, and the Nifty was up 66.70 points or 0.75% at 8945.80.
"Today’s rise could be a temporary phenomenon for the rupee, especially since global and domestic equities have reacted positively to the potential virus vaccine, while a weak dollar index has further aided. However, rupee’s risk of depreciation still remains, as domestic concerns surrounding the virus will take the forefront," said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.
"Cases in India have risen exponentially, and fiscal deficit concerns surrounding the stimulus package will weigh on the appetite going forward. Still, 76.60 remains a key cushion level for the rupee for the rest of this month," she added.
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