Going ahead 72.50 will keep acting at base resistance whereas 72.85-72.95 as support, says Jateen Trivedi, Senior Research Analyst at LKP Securities.
Indian rupee has erased some of the early losses but still trading lower at 72.82 per dollar, amid selling seen in the domestic equity market.
It opened 23 paise lower at 72.92 per dollar against previous close of 72.69.
At 11:06 IST, the Sensex was down 97.69 points or 0.19% at 52,006.48, and the Nifty was down 19.60 points or 0.13% at 15,293.90.
“Rupee traded weak near 72.70 as Crude prices scale higher giving some base resistance near 72.50-72.60 zone for the rupee. Going ahead 72.50 will keep acting at base resistance whereas 72.85-72.95 as support,” said Jateen Trivedi, Senior Research Analyst at LKP Securities.
Oil prices fell in early trade on Wednesday as the U.S. dollar climbed, retreating after a two-day rally that was driven by an Arctic blast curbing output from oil and gas fields in Texas, the country’s biggest oil-producing state.
The dollar advanced on Wednesday, hitting a four-month high against the yen as U.S. bond yields jumped on the prospects of further economic recovery and a possible acceleration in inflation.
The USDINR future witnessed marginal bounce whereas spot ended flat. Elevated crude oil prices and Dollar index above 90.5 helped pair to gain 11 paise. However, upsides seem limited, said ICICI direct.
The dollar-rupee February contract on the NSE was at Rs 72.79 in the last session. The open interest declined almost 8% in the February series, it added.
