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Rupee recovers, but trades lower at 74.89

Rupee recovers, but trades lower at 74.89
April 12
15:08 2021

In USDINR spot RBI is seen intervening in the spot around 74.95 zone, so we can expect the spot to trade within 74.25-75.25, says Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.

Indian rupee has recovered from the day’s low but still trading lower by 21 paise at 74.95 per dollar, amid weakness seen in the domestic equity market as Maharashtra government is considering a lockdown after the state Cabinet meeting on April 14.

It opened 22 paise lower at 74.96 per dollar against Friday’s close of 74.74.

The Sensex was down 1,808.55 points or 3.65% at 47,782.77, and the Nifty was down 552.30 points or 3.72% at 14,282.60.

“The last week has been very volatile and rupee has depreciated nearly 2.5% on unprecedented bond buying plan by the RBI. Had the movement been dollar index driven, we wouldn’t have seen such a sharp depreciation in the rupee,” said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.

“This week is a truncated week with two currency holidays, so we can expect the optimism over dovish Fed to limit the fall in rupee with focus on India’s CPI data and impact of Covid’s second wave.”

“In USDINR spot RBI is seen intervening in the spot around 74.95 zone, so we can expect the spot to trade within 74.25-75.25,” Gupta added.

Oil rose on Monday amid hopes that fuel demand is picking up in the United States as the summer driving season approaches and the rollout of COVID-19 vaccinations there accelerates, though increasing case numbers in other countries are set to cap gains.

Gold prices fell on Monday as data showing very strong readings for US inflation and a faster economic rebound bolstered Treasury yields, weighing on the safe-haven meta.

The dollar languished near 2-1/2-week lows against major peers on Monday as a decline in Treasury yields restrained the US currency.

Moneycontrol News

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