The Indian currency market will remain closed on February 19 on account of Chatrapati Shivaji Maharaj Jayanti.
On February 18, the rupee ended 10 paise higher at 72.65 per dollar against Wednesday’s close of 72.75.
“This truncated week the USDINR spot remained quiet. The focus will return to prospects of US stimulus and its impact on US yields. The rising yields are putting positive pressure on the dollar index, and in turn, on USDINR spot but the uptrend will be limited as traders need more proof that the US economy is improving,” said Rahul Gupta, Head Of Research-Currency, Emkay Global Financial Services.
“While the optimism over additional stimulus will keep the spot below the psychological level of 73 zone, RBI’s intervention will be eyed. We expect the trading range to be in between 72.40-73,” he added.
On the domestic equity market front, the weak global cues weighed on Indian shares that came under selling pressure for the third consecutive day on February 18, dragging the Nifty below the crucial 15,150-mark.
At close, the Sensex was down 379.14 points or, 0.73 percent, at 51,324.69 and the Nifty was down 89.90 points, or 0.59 percent, at 15,119.
Oil prices slid as much as 2% in early trade on Friday, adding to overnight declines, on worries that refineries shut by a big freeze in the US will take some time to revive operations and dent crude demand.
The US dollar maintained its biggest loss in 10 days on Friday after disappointing labour market data bruised optimism for the country’s speedy recovery from the COVID-19 pandemic.
Gold prices fell to their lowest in more than seven months on Friday, and is on course for their worst week since November end, as rising US Treasury yields eroded the non-yielding bullion’s appeal.
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