Rupee Outperforms Asian Peers Post RBI Governor Comments
The rupee gained sharply in afternoon trade and ended at 73.81 against the U.S. Dollar on Thursday - its highest level in five months. This 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 nearly 50 paise from its closing level of 74.30 on Wednesday. In morning trade on Thursday, it had touched levels of 74.36 against the greenback. The rupee was the best performing currency in Asia today.
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% to 92.93.
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, was little changed at 45.66 per barrel.