RUPEE OVERVIEW
The Rupee closed weaker after opening stronger against the US dollar amid hopes of more stimulus by governments worldwide to combat the economic setback from coronavirus pandemiC.Optimism over gradual re-opening of economies will also boost risk appetite.There is also anticipation of large foreign fund inflows into Indian companies through qualified institutional placement of shares and direct purchases of stake that have helped the rupee hold on to its gains so far this month. The US currency had weakened globally amid hopes of economic recovery, with the dollar index, that measures the strength of greenback against a basket of six major currencies, falling its lowest levels since mid march. The strength in local equity indices may support the rupee. Market players also expect investments from foreign portfolio investors to lift rupee. In the past eight days, foreign investors have net bought nearly 175 bln rupees of domestics stocks.Further, dealers anticipate a part of dollar inflows for investment into Reliance Industries' subsidiary Jio Platforms Ltd by foreign investors to hit the currency market this week. The rupee may target 74.50 levels but any sharp appreciation in the rupee is expected to be curtailed by Reserve Bank of India's dollar-buying interventions, dealers said. They have pegged 75.20 per dollar as a strong resistance for the Indian currency.