The range between 73.00 – 73.65 will be seen with volatile moves, says Jateen Trivedi, Senior Research Analyst at LKP Securities.
Indian rupee extended the early gains and trading higher by 22 paise at 73 per dollar, amid buying seen in the domestic equity markets.
It opened marginally higher at 73.22 per dollar against previous close of 73.25.
At 14:19 hrs IST, the Sensex is up 220.41 points or 0.44% at 50661.48, and the Nifty up 39.50 points or 0.26% at 14995.70.
“Rupee traded weak as a base seems to have formed near 73.00 as the level which witnessed strong breach on the upside on 26Feb again it has taken the support near the said levels due to rise in Crude prices which has touched 70$ mark in brent,” said Jateen Trivedi, Senior Research Analyst at LKP Securities.
“Along with that rise in dollar prices also weakens the rupee. The range between 73.00 – 73.65 will be seen with volatile moves,” he added.
Oil prices rose on Tuesday on expectations of a recovery in the global economy after U.S. Senate approval of a $ 1.9 trillion stimulus bill and on a likely drawdown in crude oil inventory in the United States.
The U.S. dollar held near a 3 1/2-month high against its rivals on Tuesday as higher bond yields and expectations of faster economic normalisation from the pandemic in the United States put the U.S. currency at an advantage.