With the dollar expected to find fresh strength due to expected rise in corporate taxes, we expect the depreciation trend in the rupee to continue towards 76 levels, says ICICI Direct.
Indian rupee opened lower at 75.02 per dollar on Friday against previous close of 74.95, amid selling seen in the domestic equity market.
On April 22, rupee ended lower by 7 paise at 74.95 per dollar against Tuesday close of 74.88.
The Sensex was down 140.76 points or 0.29% at 47939.91, and the Nifty was down 28 points or 0.19% at 14378.20.
The dollar was hemmed into a narrow trading range on Friday as traders contemplate the next moves by major central banks ahead of a U.S. Federal Reserve meeting next week.
The rupee has so far significantly underperformed its Asian peers and remained under pressure despite a weakening dollar. With the dollar expected to find fresh strength due to expected rise in corporate taxes, we expect the depreciation trend in the rupee to continue towards 76 levels, said ICICI Direct.
The dollar-rupee April contract on the NSE was at Rs 75.06 in the last session. The open interest rose 3% for the April series, it added.
Oil prices were little changed on Thursday as concerns over lower crude production in Libya offset expectations that rising coronavirus cases in India and Japan would cause energy demand to decline.
Gold gained on Friday and was poised for a third straight weekly rise as a softer US dollar, falling Treasury yields and a dip in equities after US President Joe Biden’s proposal to hike capital gains tax encouraged investors to flock towards bullion.
