Rupee erases early gains, trades flat at 75.78 per dollar

May 21
15:09 2020

Rupee has closed with a gain of 19 paise at day’s high level at 75.60 per dollar on May 21, amid buying seen in the domestic equity market.

It opened 10 paise higher at 75.69 per dollar and remained in the range of 75.60-75.82.

At 14:11 IST, the Sensex was up 246.02 points or 0.80% at 31064.63, and the Nifty was up 68.95 points or 0.76% at 9135.50.

“The COVID-19 vaccine-trials temporarily excites the market. But there are headwinds due to ongoing US-China trade tiff and worries over second wave of infection. Also, Reliance right issue has opened, and we can see some FII participation in it in coming days which may limit the fall in rupee,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

“Technically, The USD/INR spot is trading in a very tight range of 75.25-76, and we expect it to remain in this until there are major cues. Either side breakout will give further clarity over the trend,” he added.

Oil prices edged higher on Thursday after data showed U.S. crude inventories fell again, easing concern about a supply glut, though lingering fears over the global economic fallout from the COVID-19 pandemic capped gains.

The dollar-rupee contract on the NSE was at 75.72 in the last session. The open interest fell by almost 1.28% during the last session, said ICICIdirect.

As trade wars fear further escalated, the rupee along with other EM currencies came under pressure. However, looking at the overall data, we feel the rupee will remain in a range for the week, it added.

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