Rupee settles 78 paise higher at 75.16 a dollar on stimulus boost

The Indian rupee surged by another 78 paise to 75.16 (provisional) against the US dollar on Thursday after Finance Minister Nirmala Sitharaman announced various welfare measures to tide through the coronavirus crisis.

The government on Thursday unveiled a Rs 1.70 lakh crore economic package involving free foodgrain and cooking gas to poor for the next three months, higher wages to workers and measures to boost liquidity of employees as part of measures to ease the economic impact of lockdown.

Forex traders welcomed the government initiatives and said the revival of the economy though welfare measures was very much needed as the slowdown in demand was further hit by COVID-19 pandemic.

The rupee, which opened on a positive note at 75.90, settled for the day with gains of 78 paise at 75.16 against the American currency.

During the day, the domestic unit touched a high of 75.10 and a low of 75.94.

On Tuesday, rupee had gained 26 paise to settled at 75.94 against the US dollar.

Forex market was closed on Wednesday on account of Gudi Padwa.

"Rupee rallies, playing catch-up with Asian currencies, amid a stock rally after the US Senate passes virus rescue plan. India also announced Rs 1.7 trillion spending plan as part of measures to ease the economic impact of lockdown," said VK Sharma, Head PCG & Capital Markets Strategy, HDFC securities.