Rupee gains 40 paise; touches 73.90 against dollar after RBI Guv comments
Aug 27, 2020
MUMBAI: The rupee gained sharply in afternoon trade and touched 73.90 against the US dollar on Thursday after RBI Governor Shaktikanta Das said the central bank has not exhausted its ammunition to deal with the current situation due to the coronavirus pandemic.
The rupee rose 40 paise from its closing level of 74.30 on Wednesday. In morning trade on Thursday, it had touched 74.36 against the American currency.
Speaking at a webinar organised by financial daily Business Standard, Das said that rather than becoming averse to lending, banks have to improve their risk management and governance frameworks, and also build sufficient resilience.
"Extreme risk aversion can be self-defeating, banks will not be able to win their bread," Das said, amid reports of a slowdown in credit growth in the system.
He also said the central bank has not exhausted its ammunition, whether on rate cuts or other policy actions, to deal with the current situation due to the pandemic.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.08 per cent to 92.93.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 173.06 points higher at 39,246.98 and broader NSE Nifty rose 46.85 points to 11,596.45.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,581.31 crore on Wednesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 0.18 per cent to USD 45.72 per barrel.