As Dollar index sustaining below 92 levels, we feel INR is likely to appreciate towards 72.3 levels in coming days, says ICICI Direct.
Indian rupee is trading flat at 72.56 per dollar, amid selling seen in the domestic equity market.
It opened marginally lower at 72.58 per dollar against Tuesday’s close of 72.55.
At 15:00 IST, the Sensex was down 322.14 points or 0.64% at 50,041.82, and the Nifty was down 119 points or 0.80% at 14,791.50.
“With FOMC scheduled for today I believe shorts will be covered after the initial selling. Opening should be at 72.50 and range for the day 72.40 to 72.70 with RBI standing at 72.40 firmly and others just selling as they get higher levels,” said Anil Kumar Bhansali, Head- Treasury, Finrex Treasury Advisors.
“With today’s event, importers should hedge their March imports, while exporters can wait for 73.00 levels to hedge which may be seen tomorrow,” he added.
Oil prices slipped for a fourth day on Wednesday on worries about rocky demand in Europe, even as hopes of a recovery in US refinery activity were boosted by industry data that showed US crude stockpiles unexpectedly fell last week.
USDINR pair remained almost flat for the day after initial volatility. As Dollar index sustaining below 92 levels, we feel INR is likely to appreciate towards 72.3 levels in coming days, said ICICI Direct.
The dollar-rupee March contract on the NSE was at Rs 72.62 in the last session. The open interest rose by almost 0.6% for the March series, it added.