As the Dollar index is expected to bounce from support level of 90.5-91, we may see the rupee move towards 75.50 levels once again, says ICICI Direct.
Indian rupee opened higher by 5 paise at 74.67 per dollar on Tuesday against previous close of 74.72, amid buying seen in the domestic equity market.
On April 26, rupee ended higher at 74.72 per dollar against Friday’s close of 75.01.
The Sensex was up 314.81 points or 0.65% at 48701.32, and the Nifty was up 92.80 points or 0.64% at 14577.80.
The USDINR pair is finding hurdles at higher levels due to continuous supply at 75.00-75.50. As the Dollar index is expected to bounce from support level of 90.5-91, we may see the rupee move towards 75.50 levels once again, said ICICI Direct.
The dollar-rupee April contract on the NSE was at Rs 74.79 in the last session. The open interest fell 5% for the April series, it added.
The dollar hovered near multi-week lows versus major peers on Tuesday, weighed by subdued Treasury yields, as investors consolidated positions ahead of the Federal Reserve’s policy decision this week.
“Rupee traded strongly near 74.70 on back of lower dollar index moves, and good participation in the capital market seen on the first week of the day. With lock-down, some respite was seen in Covid-19 numbers especially in Mumbai. Helping new infection some control,” said Jateen Trivedi, Senior Research Analyst at LKP Securities.
“Rupee can be seen in a range of 74.50-75.00 in coming sessions,” he added.
