The lockdown in Europe and upbeat US data will limit any fall in USDINR spot. Thus we expect the spot to trade within 72.20-72.80, says Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.
Indian rupee extended the early losses and ended near the day’s low level at 73.38 per dollar, amid buying seen in the domestic equity market with benchmark indices rose over 2 percent each.
It opened lower at 72.81 per dollar against previous close of 72.67 and traded in the range of 72.76-73.46.
At close, the Sensex was up 1,128.08 points or 2.30% at 50,136.58, and the Nifty was up 337.80 points or 2.33% at 14,845.10
On March 29, the currency market remained closed on account of Holi.
The dollar climbed to a one-year high against the yen on Tuesday amid a spike in Treasury yields, as accelerating vaccinations and massive stimulus in the U.S. stoked inflation concerns.
“This week is a truncated week with currency holidays, so we can expect market participation to be muted. At this point fx market is trying to get some more global news that will be the next catalyst,” said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.
“So, unless any nation stops the vaccine rollout, the rapid vaccination drive by the US will keep the risk appetite higher.”
“However, lockdown in Europe and upbeat US data will limit any fall in USDINR spot. Thus we expect the spot to trade within 72.20-72.80,” gupta added.
Oil prices fell on Tuesday as shipping traffic resumed through the Suez Canal after days on hold and attention switched to an OPEC+ meeting this week where the extension of supply curbs may be on the table amid new coronavirus pandemic lockdowns.