With dollar taking support near $ 90.00 USDINR has taken support near 73.00. 73.55 can be on cards in coming sessions says Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.
Indian rupee erased some of the gain but still trading higher at 73.22 per dollar, amid buying seen in the domestic equity market.
It opened 11 paise higher at 73.17 per dollar against previous close of 73.28.
At 13:37 IST, the Sensex was up 728.53 points or 1.50% at 49,292.80, and the Nifty was up 208.70 points or 1.46% at 14,490.
“Rupee traded weak near 73.25 on back of support from dollar index which has stabilized before new US President Biden takes over from current President Trump. With dollar taking support near $ 90.00 USDINR has taken support near 73.00. 73.55 can be on cards in coming sessions,” said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.
The dollar hovered around its highest in nearly one month on Tuesday with traders expecting U.S. Treasury Secretary nominee Janet Yellen to affirm a more traditional commitment to market-set currency rates when she testifies at Capitol Hill later.
“US President-elect Joe Biden has recently unveiled his USD 1.9 trillion stimulus proposal. Interestingly, this announcement did not put any pressure on the US dollar. The dollar-rupee January contract on the NSE was at Rs 73.32 in the last session. The open interest increased almost 15% in the February series while marginal decline was seen in January series contracts,” said ICICI direct.