Rupee opens higher at 73.24 per dollar

Representative image

Representative image

Indian rupee opened 6 paise higher at 73.24 per dollar on Tuesday against Monday’s close of 73.30, amid buying seen in the domestic equity market.

On April 5, Indian rupee ended 19 paise lower at 73.30 per dollar against Wednesday’s close of 73.11.

At 10:02 IST, the Sensex was up 228.82 points or 0.47% at 49388.14, and the Nifty was up 73.30 points or 0.50% at 14711.10.

“The USD/INR Future traded firm at 73.55, up 17 paise/USD from the previous close. After breaking the 73.50 mark, the currency pair’s resistance would be 73.80 and 74.10 before any recovery can be seen. The currency pair has appreciated by more than 1.44 percent in two working days, from its closing level of 72.51 on Friday last week,” said Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research.

“The rupee’s down step to test the strong support at 73.80 appears to be triggered by the sharp rise in the dollar against major currencies and higher US yields. In the near term, the domestic currency is projected to trade with two-way movements in a broad range between 72.80 and 74.20,” Purohit said.

“Prices are respecting the trend line drawn long before and testing the resistance levels on it on hourly chart, the same can be seen on chart,”.

“We can see consolidation of prices after crossing the 20-Moving Average on the downside on hourly chart, from which we can expect prices to fall to the levels of 73.30-73.00 in the upcoming sessions. Dollar Index will hold a support of $ 92.66-92.45 levels above which will continue its bullish momentum up to $ 93.25-$ 93.60 levels,” he added.

Oil prices rose early on Tuesday as a drop in the U.S. dollar made crude a more attractive buy, paring losses of more than 4% incurred overnight on the prospect of producers returning more than 2 million barrels per day of supply to the market by July.

Gold prices rose on Tuesday, as a weaker dollar made bullion cheaper and more attractive for buyers outside the United States, while a pull-back in U.S. Treasury yields provided further support.

As the Dollar index has retraced from fresh four-month’s high below 93 levels, marginal respite was seen in the domestic currency. However, continued Put writing may keep downsides limited while declines remain a buying opportunity, said ICICI Direct.

The dollar-rupee April contract on the NSE was at Rs 73.55 in the last session. The open interest declined almost 5.3% for the April series, it added.