The Put base at 73 is likely to act as crucial levels for the currency pair as it has remained an important support in the recent past. A move below these levels might open the gates for sharp appreciation, says ICICIdirect.
Indian rupee extended the early gains and ended at day’s high at 73.02 per dollar, amid domestic equity market hitting fresh record high.
It opened higher at 73.11 per dollar against previous close of 73.17 and remained in the range of 73.02-73.14.
At close, the Sensex was up 393.83 points or 0.80% at 49,792.12, and the Nifty was up 123.50 points or 0.85% at 14,644.70.
“USDINR getting sold off as it approaches 73.30 and RBI accumulating reserves ensuring the fall is not below 73.00. Same story for the last few days. Sell near 73.30 and importers to buy near 73.00. Yellen advocating for stimulus keeps dollar weakened, said Anil Kumar Bhansali, Head- Treasury, Finrex Treasury Advisors.
Oil prices rose in early trade on Wednesday, adding to solid gains overnight, on expectations the incoming U.S. administration will go ahead with massive stimulus spending that would boost fuel demand and draw down crude stocks.
The Put base at 73 is likely to act as crucial levels for the currency pair as it has remained an important support in the recent past. A move below these levels might open the gates for sharp appreciation, said ICICIdirect.
The dollar-rupee January contract on the NSE was at Rs 73.20 in the last session. The open interest increased almost 8% in the February series while marginal decline was seen in January series open interest, it added.
