A fall below 72.75 will push price towards 72.50 zone, however a reversal may take spot towards 73.50 zone, says Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
Indian rupee has recovered some early losses but still trading 16 paise lower at 73.08 per dollar, amid selling seen in the domestic equity market.
It opened 21 paise lower at 73.13 per dollar against previous close of 72.92.
At 11:11 IST, the Sensex was down 387.47 points or 0.82% at 47,022.46, and the Nifty was down 108.60 points or 0.78% at 13,858.90.
“The downside in USDINR spot is getting cushioned by IMF’s impressive projection about India’s 2021 growth. The downtrend will continue as long as Fed remains accommodative, but any update from Powell about future tapering or delay in US fiscal stimulus rollout will lead to a reversal in USDINR spot. A fall below 72.75 will push price towards 72.50 zone, however a reversal may take spot towards 73.50 zone,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
Oil prices slid in early trade on Thursday on fresh worries about weakened fuel demand, after England clamped down on travel and China, the world’s second-largest oil consumer, also sought to limit Lunar New Year trips to stem a surge in COVID-19 cases.
The dollar extended gains against most currencies on Thursday as a stock market rout due to concerns about excessive valuations boosted safe-harbour demand for the U.S. currency.
USDINR pair reverted in the last session but closed almost flat amid strength in dollar index. For the February series, the Call base is placed at 73.50, which should be immediate hurdle for the pair, said ICICI direct.
The dollar-rupee February contract on the NSE was at Rs 73.23 in the last session. The open interest increased by 69% as the new series started, it added.