January series shed 11% in Open Interest whereas price remained flat indicating marginal bounce could be seen in today’s session, says ICICIdirect.
Indian rupee ended higher by 11 paise at 73.04 per dollar, amid volatile trade saw in the domestic equity market.
It opened marginally lower at 73.19 per dollar against previous close of 73.15 and traded in the range of 72.93-73.18.
At close, the Sensex was up 91.84 points or 0.19% at 49,584.16, and the Nifty was up 30.70 points or 0.21% at 14,595.60.
“Right now the risk sentiments are stuck in the race of covid-cases and vaccine rollout. In the end vaccine will win but until then the fear of lockdown is hanging over the head. Locally, there are a lot of IPOs lined up this year, so overall downside in USDINR spot will retain,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
“But the magnitude of fall depends on which level is comfortable for RBI. Lately, RBI intervention is seen around 73 zone, so USDINR spot will hover in 72.90-73 zone, with 73.50 being the immediate resistance. A break of 72.90-73 will push prices towards 72.75,” he added.
Oil prices eased for a second day on Thursday as mounting coronavirus cases globally raised demand concerns, although a drawdown in U.S. crude stocks for a fifth straight week capped losses.
The dollar extended its rebound from near three-year lows versus major peers on Thursday, supported by higher U.S. yields, as President-elect Joe Biden prepared to outline his plans for massive fiscal stimulus.
The USDINR pair ended almost flat for the day despite marginal rise in Dollar index. January series shed 11% in Open Interest whereas price remained flat indicating marginal bounce could be seen in today’s session, said ICICIdirect.
The dollar-rupee January contract on the NSE was at Rs 73.38 in the last session. The open interest fell 11.1% in the January series contracts, it added.