The appreciation trend for the rupee is likely to continue towards 72.50 from where some bounce can be expected, says ICICI direct.
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Indian rupee is trading flat at 72.71 per dollar, amid buying seen in the domestic equity market.
It opened marginally higher at 72.65 per dollar versus Monday’s close of 72.69.
At 11:19 IST, the Sensex was up 172.77 points or 0.33% at 52,326.90, and the Nifty was up 62.60 points or 0.41% at 15,377.30.
The U.S. dollar was pinned down on Tuesday, as vaccine optimism boosted the British pound to an almost three-year high, while rising oil prices and buoyant expectations for global recovery supported commodity and trade-exposed currencies.
Oil prices rose on Tuesday as a cold front shut wells and refineries in Texas, the biggest crude producing state in the United States, the world’s biggest oil producer.
The USDINR future continued to witness declines as the dollar has moved closer to two weeks low. The appreciation trend for the rupee is likely to continue towards 72.50 from where some bounce can be expected, said ICICI direct.
The dollar-rupee February contract on the NSE was at Rs 72.71 in the last session. The open interest declined almost 5% in the February series, it added.
