At the current level, the rupee is down6.84% against the dollar so far this year
The rupee appreciated on Monday to move further away from all-time lows against the US dollar recorded last week, after the Reserve Bank of India opened a special liquidity facility worth Rs 50,000 crore for mutual funds. The RBI move was aimed at helping mutual funds tide over a severe liquidity strain imposed by the coronavirus pandemic, days after a prominent fund house said it would wind down six credit funds due to a lack of liquidity.
After starting the session at 76.14 against the greenback, the rupee gained by as much as 41 paise - or 0.54 per cent - to touch 76.04 at the strongest level of the day, before shutting shop at 76.24.
Fund houses in India have struggled to allay investors' fears of a flood of redemption requests after the prominent Franklin Templeton Mutual Fund said on Thursday it would wind up six credit funds for lack of liquidity.
The central bank said heightened volatility in capital markets in reaction to COVID-19 has imposed liquidity strains on mutual funds.
