Indian rupee on April 7, 2020 opened on a strong note with gains of 32 paise at 75.90 per US dollar. On Friday, the rupee closed at a record low of 76.22. On Monday, the forex market was shut due to Mahavir Jayanti.
"We may see RBI intervening and capping the volatility however, there is not much RBI can do. 76.80-76.85 will act as a crucial resistance with 75.40 in support," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
In the bond market, yield on10-year benchmark bonds further increased to 6.37% from previous close of 6.30%.
Oil prices climbed on Tuesday as hopes of production cuts by major oil producers including Saudi Arabia and Russia strengthened. Though, analysts caution that supply cuts would not help much in boosting demand for the commodity amid coronavirus pandemic that has ravaged global economy.
Amid lockdown situation in the country and operational issues, the RBI cut money market timings from 9 am to 5 pm to 10 am to 2 pm. The new timings will be applicable from April 7 to April 17.
Meanwhile, Indian equities tracking global cues is trading firm with gains of over 4% on both the Sensex and Nifty.