We continue to believe that the rupee would appreciate and move towards 72.3 levels, says ICICI direct.
Indian rupee has extended the early gains and trading higher by 17 paise at 72.29 per dollar, amid buying seen in the domestic equity market
It opened higher by 9 paise at 72.37 per dollar against Tuesday’s close of 72.46.
The dollar slipped to a three-year low against the British pound and nursed losses against commodities currencies on Wednesday as investors increased bets that a global economic recovery will boost riskier assets.
The USDINR appreciated whereas future fell 10 paise and ended marginally above 72.54 levels ahead of the expiry. We continue to believe that the rupee would appreciate and move towards 72.3 levels, said ICICI direct.
The dollar-rupee February contract on the NSE was at Rs 72.54 in the last session. The open interest fell almost 10% in the February series, it added.
Oil prices fell in early trade on Wednesday after industry data showed U.S. crude inventories unexpectedly rose last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut, reported Reuters.