The range between 73.00 – 73.65 will be seen with volatile moves, says Jateen Trivedi, Senior Research Analyst at LKP Securities.
Indian rupee ended near the day’s high level with a gain on 32 paise at 72.93 per dollar, amid buying saw in the domestic equity markets.
It opened marginally higher at 73.22 per dollar against previous close of 73.25 and traded between 72.91-73.25 range.
At close, the Sensex was up 584.41 points or 1.16% at 51,025.48, and the Nifty was up 142.20 points or 0.95% at 15,098.40.
“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.