The support zone of 72.70-72.75 is very crucial and we may have to look out for RBI intervention, only a break of 72.70 will push the price towards 72.50, meanwhile 73.50 will act as a strong resistance, says Rahul Gupta, Head Of Research-Currency, Emkay Global Financial Services.
Indian rupee extended the early gains and trading at day’s high level at 72.74 per dollar, amid selling seen in the domestic equity market.
It opened 33 paise higher at 73.03 per dollar versus Wednesday’s close of 73.36.
At 11:16 IST, the Sensex was down 435.84 points or 0.85% at 51,008.81, and the Nifty was down 116.30 points or 0.76% at 15,129.30.
“Rupee traded strong again on the back of aggressive fund inflows in Indian markets with Vaccination roll-outs for 45 and above people giving confidence to investors in Indian markets to emerge strongly out of Pandemic,” said Jateen Trivedi, Senior Research Analyst at LKP Securities.
“With US Bond yields witnessing ease move, after Fridays, extreme movement currencies globally have now come back to zones of last Thursday. Going ahead 72.75-73.25 range can be witnessed,” he added.
The dollar hit a seven-month high against the yen on Thursday as an orderly rise in U.S. Treasury yields lent support ahead of a speech by Federal Reserve Chairman Jerome Powell that may determine the trend for global bond markets and currencies.
Oil prices rose for a second straight session on Thursday, as the possibility that OPEC+ producers might decide against increasing output at a key meeting later in the day underpinned alongside a drop in U.S. fuel inventories.
“The risk appetite is favourable and there are IPO’s lined up in coming sessions which will keep weighing on USDINR spot. If interest rates start moving higher and quicker than expected, then only there’s a chance that there might be a more significant rally in USDINR spot,”said Rahul Gupta, Head Of Research-Currency, Emkay Global Financial Services.
“The support zone of 72.70-72.75 is very crucial and we may have to look out for RBI intervention, only a break of 72.70 will push the price towards 72.50, meanwhile 73.50 will act as a strong resistance,” Gupta added.
