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Rupee rises against US dollar, back near 76 per USD

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Sensex was 200 points higher in noon trade while Nifty held firm above 11,300.Foreign institutional investors were net buyers in the capital market as they bought shares worth ₹1,237 crore on Friday, according to provisional exchange data."RBI's forex reserves rose another $6 billion in the week ended June 12th to a record $507.5 billion.

A huge reserve buffer alters the structural dynamics in the rupee and gives the RBI greater power to influence rupee price action, it's relative valuation and volatility should it so decide.

We expect the RBI to continue absorbing inflows, accumulating reserves and strengthening it's balance sheet. Inflows related to strategic investments by foreign investors in Jio and month-end exporter selling could cap.

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