Analysts see rupee at 76.5; Four factors that may guide the trajectory

Rupee vs Dollar: Over the short-term, currency watchers expect the rupee to fall on the back of the RBI's plan to buy government bonds worth Rs 1 trillion from the secondary market

After suffering its biggest one-day fall since August 2019 on Wednesday, the rupee appreciated by 10 paise on Thursday to quote at 74.37 against the US dollar in intraday deals. It nosedived 1.52 per cent on April 7 and closed at 74.56 to a dollar — the lowest since November 13, 2020.

The local currency came under pressure after the Reserve Bank of India (RBI) committed to buying Rs 1 trillion bonds from the secondary markets in the first quarter of fiscal year 2021-22 (Q1FY22). The 10-year bond yields fell as low as 6.06 per cent after the monetary policy