ICICI Direct feel a marginal retracement towards 73 levels could be possible in the USDINR pair.
Indian rupee is trading 30 paise lower at 73.41 per dollar, amid selling seen in the domestic equity market on the back of worries over rising COVID-19 cases in India.
It opened lower at 73.44 per dollar against Wednesday’s close of 73.11.
India reports 1,03,558 new COVID-19 cases, 52,847 discharges, and 478 deaths in the last 24 hours, as per the Union Health Ministry.
At 12:29 IST, the Sensex was down 1,108.71 points or 2.22% at 48921.12, and the Nifty was down 305.40 points or 2.05% at 14562.
The currency market remained shut on April 1 (Thursday) for annual bank closing and on April 2 (Friday) on account of Good Friday.
As the Dollar index has retraced from fresh four-month’s high with Call writing positions intact in OTM strikes. We feel a marginal retracement towards 73 levels could be possible in the USDINR pair, said ICICI Direct.
The dollar-rupee April contract on the NSE was at Rs 73.42 in the last session. The open interest remained almost flat for the April series, it added.
Gold prices held steady on Monday, buoyed by concerns over inflation after U.S. President Joe Biden announced a $ 2 trillion-plus jobs plan last week, while a stronger dollar and elevated U.S. Treasury yields limited bullion’s upside.
Oil prices edged down in early Asian trade on Monday after OPEC+ agreed last week to gradually ease some of its production cuts between May and July.
The dollar was poised to extend gains against major currencies on Monday after the U.S. jobs report at the end of last week showed the nation’s labour market is recovering from the impact of the coronavirus shock.