RUPEE OVERVIEW

The Indian Rupee closed stronger after opening above the crucial 76.00 mark as fears about a second wave of coronavirus infections in the US and a grim economic situation by the Federal Reserve have dimmed hopes about a swift recovery in global growth and rattled market sentiment globally.The number of COVID-19 cases crossed 2 mln in the US on Thursday, which led to overnight strength in the safe-haven US dollar. This will likely put pressure on the Indian rupee, which has shown resilience for more than a month.Coronavirus infections are expected to rise more in the US as states go ahead with reopening economies after a two-month nationwide lockdown.The US cannot shut down the economy for a second time even if coronavirus cases continue to rise. He said the harm to the economy and spillover effects is too great.There is also a risk that widespread nationwide protests over the killing of George Floyd on Mar 25 may lead to another spike in COVID-19 cases in the next week or so.On.Fed Chairman Jerome Powell said he was "not even thinking about raising rates," and that recovery would be a long road. Interest rates in the US would remain near zero till the end of 2022, which was more accommodative than the expectations of market players.Fed policymakers have forecasted the US economy to contract 6.5% this year and the unemployment rate at 9.3% by the end of this year.The Indian currency has been in the range of 75.30-75.90 a dollar for more than a month, with foreign fund inflows for investments into Indian companies on one side and the Reserve Bank of India's heavy dollar-buying interventions on the other.Concerns about India's weak growth and strain on the government finances make a case for rupee depreciation. While the anticipation of foreign fund inflows for investments into Indian companies may support the rupee most traders are likely to place bets against the Indian currency during the day.