Rupee ends marginally higher at 72.92 per dollar


Indian rupee ended with a gains of 4 paise at 72.92 per dollar, amid buying seen in the domestic equity market and RBI kept the key rates unchanged.

It opened flat at 72.98 per dollar versus Thursday’s close of 72.96 and traded in the range of 72.79-72.99.

Reserve Bank of India (RBI) has kept repo rate unchanged at 4 percent and also kept Reverse Repo Rate unchanged at 3.35 percent and also remain with the accomodative policy stance as long as required.

At close, the Sensex was up 117.34 points or 0.23% at 50,731.63, and the Nifty was up 28.60 points or 0.19% at 14,924.30.

USDINR pair continued to hover around USD 73 post Budget as well. A pullback could be possible due to major Put writing in 73 strike and weakness in Euro due to which has kept Dollar index remained elevated, said ICICI direct.

The dollar-rupee February contract on the NSE was at Rs 73.13 in the last session. The open interest increased by almost 7% for February series, it added.

The dollar headed for its best weekly gain in three months, lifted by growing confidence that the U.S. economic recovery will outpace global peers.

Gold dropped more than 2% on Thursday to break below the key psychological USD 1,800 level as a rising dollar and US Treasury yields eroded bullion’s appeal.

However, Gold inched up on Friday, recovering from a more than two-month low hit in the previous session, but the precious metal was set for its biggest weekly drop since end-November pressured by a firmer dollar.

Oil prices climbed on Friday to their highest levels in a year, extending a run of strong gains this week, boosted by the continued commitment of producers to hold back crude supply and positive signs of economic growth in the United States.

“Technically, USDINR Feb Future closed at 73.1275. It is expected to trade with bullish momentum for the day. Spot pair took support of 72.80 and come up, it took resistance of 21 days SMA placed at 73.08 and closed below it. It is expected to open near 72.90. Strong Dollar index, RBI are defending 72.80 levels very strongly, said Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research.