On account of COVID-19 hurting the US Dollar and Foreign Direct Investment (FDI) flow rising in India, the Indian Rupee may rise up to 74.70 mark. According to currency experts, American currency is under stress due to the rising cases of Coronavirus and at the same time FDI flows into India have been rising. Now, the Reserve Bank of India (RBI) is also not buying dollars the way it was buying in the last three months, so the outlook for rupee against the US dollar seems positive in the next fortnight, says experts.

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Speaking on the INR to USD deviation Anindya Banerjee, Deputy Vice President at Kotak Securities said, "Asian equity markets are in the green and Asian currencies are also trading marginally higher against USD. Technically, USDINR has support around 75.20 levels and below that it may test 74.60/70 levels." 

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On the reason for rise in the rupee against the USD, Anindya said that FDI inflows in India have been rising post-lockdown while rising COVID-19 cases in the US are hurting the Dollar heavily. He said that Indian Central Bank is also not buying dollars aggressively and hence we can expect rupee to gain further momentum and touch 74.70 mark in the next fortnight.

On limitation that rupee may have to face while ascending against the US Dollar, Anuj Gupta, Deputy Vice President — Commodities & Currency Research at Angel Broking said, "Crude prices are rising globally and in India petrol and diesel prices have gone very high, in fact, diesel price has surpassed petrol prices. In that case, in the coming time, when there will be complete unlock across nations, petrol and diesel prices may fuel inflation. In the wake of rising inflation, Indian rupee might find it difficult to continue rally against the US Dollar."