The USDINR pair is likely to see some weakness from 72.40 levels as the dollar index is likely to strengthen further from current levels, says ICICI Direct.
Indian rupee ended flat at 72.51 per dollar, amid buying saw in the domestic equity market.
It opened marginally lower at 72.58 per dollar against previous close of 72.52 and traded in the range of 72.46-72.58.
At close, the Sensex was up 641.72 points or 1.30% at 49,858.24, and the Nifty was up 186.10 points or 1.28% at 14,744.
“The US Dollar is higher side as Treasury yields surged above 1.70% in expectation of the higher inflation. Technically, the USDINR future took the support of 72.40 levels which very strong levels,” said Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research.
“In our anticipation, USDINR future likely to open around 72.70 in next session and if it cross 72.80 levels then we may expect strong momentum towards 73.10. The trading range will likely to be in between 72.55-72.90,” he added.
Oil prices fell on Friday, extending losses for a sixth day as a new wave of COVID-19 infections wash across Europe, spurring new lockdowns and dampening hopes for a recovery in demand for fuels anytime soon.
The USDINR pair is likely to see some weakness from 72.40 levels as the dollar index is likely to strengthen further from current levels. On the higher side, we expect the pair to find immediate hurdle around 72.90 levels, said ICICI Direct.
The dollar-rupee March contract on the NSE was at Rs 72.59 in the last session. The open interest remained almost unchanged for the March series, it added.
