We expect USDINR Spot to trade sideways with negative with 72.65/72.50 being key support zone below which next support is at 72.30, says Rahul Gupta, Head Of Research-Currency, Emkay Global Financial Services.
Indian rupee erased all the intraday gains and ended at day’s low at 72.69 per dollar, amid buying saw in the domestic equity market with benchmark indices hitting fresh record highs.
It opened 14 paise higher at 72.61 per dollar against previous close of 72.75 and traded in the range of 72.57-72.69.
At close, the Sensex was up 609.83 points or 1.18% at 52,154.13, and the Nifty was up 151.40 points or 1% at 15,314.70.
“The USDINR spot is trading within the range of 72.65-73.15. Global markets sentiments are optimistic with world stocks hovering just near records highs on hopes that a $ 1.9 trillion covid-19 aid package will be passed by US policymakers as soon as this month just as coronavirus vaccines are being rolled out globally. However, renewed geopolitical tensions between US-China led investor’s enthusiasm to calm a bit,” said Rahul Gupta, Head Of Research-Currency, Emkay Global Financial Services.
“Good risk appetite coupled with inflows into local stocks will help Indian Rupee to appreciate, but likely RBI intervention at around 75.70-72.60 zone may limit the fall in USDINR pair.”
“We expect USDINR Spot to trade sideways with negative with 72.65/72.50 being key support zone below which next support is at 72.30. On the upside, 73.0-73.15-73.25 will act as the crucial resistance levels,” he added.
Oil prices rose to their highest in more than a year on Monday, after a Saudi-led coalition fighting in Yemen said it intercepted an explosive-laden drone fired by the Iran-aligned Houthi group, raising fears of fresh Middle East tensions.
Hopes for more U.S. stimulus and an easing of coronavirus lockdowns helped support the rally, after prices gained around 5% last week.
The USDINR future witnessed sharp declines in the last session and futures moved to their lowest levels of more than 11 months. We expect the current trend to continue and the rupee can test 72.50 levels in coming sessions, said ICICI direct.
The dollar-rupee February contract on the NSE was at Rs 72.74 in the last session. The open interest increased by almost 1% in the February series, it added.
