Rupee at day#39;s high; utilise upsides to initiate short position
Indian rupee has gained the momentum and trading at day’s high level at 71.29 per dollar on October 17.
Domestic equity market is trading higher with Nifty hovering around 11,500, while Sensex is up 154.31 points at 38,753.30.
The local currency opened marginally higher at 71.38 per dollar against previous close 71.43.
ICICIdirect expect the USD-INR to meet supply pressure at higher levels. Utilise upsides in the pair to initiate short position.
The dollar index closed slightly lower yesterday amid further up moves in the GBP and Euro. Rising expectation that there is still a possibility of a last minute EU-UK deal is supporting sharp surge in Pound and Euro.
However, CNY is currently trading at 7.09 levels v/s USD. Move in CNY in backdrop of recent delay is rate hike holds key for move in EM currencies including rupee, it added.
Yesterday the rupee recovered from the lows and finished 11 paise higher at 71.43 against the US dollar, tracking gains in domestic equity markets and softening crude oil prices.
Rupee traded in a range as market participants remained cautious ahead of the important Brexit summit scheduled later this week. On the domestic front, focus will now shift to RBI meeting minutes that will be released on Friday and dovish outlook could keep the rupee under pressure, said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services Private.
For the next couple of sessions, we expect the USD-INR to quote in a wide range of 71.20 and 71.80 (Spot).
Pound is likely to be influenced the most from the EU summit and if EU and UK manage get a deal on the table the currency could extend gains from these levels, he added.The Great Diwali Discount!
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