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Rupee trades higher at 74.70 per dollar

Rupee trades higher at 74.70 per dollar
July 23
15:08 2020

We expect 74.50 to continue to act as a crucial support until the US decides on the fresh stimulus program, says Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

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Indian rupee has erased its early gains and ended flat at 74.75 per dollar, amid buying seen in the domestic equity market.

It opened higher  at 74.64 per dollar against previous close of 74.76 and remained in the range of 74.60-74,87.

At 14:15 IST, the Sensex was up 278.37 points or 0.74% at 38149.89, and the Nifty was up 87.30 points or 0.78% at 11219.90.

“Overall the trend in USDINR spot has been bearish, breaching the psychological level of 75 on weak dollar and risk on mood. In the past, the USDINR spot has not been able to break the crucial support of 74.50 on likely RBI buying, and had bounced from there,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

“We expect 74.50 to continue to act as a crucial support until the US decides on the fresh stimulus program. However, a consistent trading below 74.50 will open doors for 74.20/74.25 with 75 acting as the crucial resistance,” he added.

Oil prices lost more ground on Thursday, with the market weighed down by a surprise increase in U.S. crude oil reserves as the coronavirus pandemic hits fuel consumption.

Marginal short positions were formed in the USDINR pair at higher levels. Call writing rose in 75 strike, indicating an immediate hurdle. We feel a close below 74.5 levels would open the gates for more downsides, said ICICIdirect.

The dollar-rupee contract on the NSE was at 74.62 in the last session. The open interest rose 2.1% in the last session, it added.

First Published on Jul 23, 2020 10:00 am

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