As the dollar index is near support, we might see USDINR pair moving towards 74.6 levels again, says ICICI Direct.
Indian rupee is trading marginally lower at 74.07 per dollar, amid selling seen in the domestic equity market.
Rupee opened flat at 74.03 per dollar against previous close of 74.04.
The Sensex was down 724.13 points or 1.46% at 49041.81, and the Nifty was down 188.20 points or 1.26% at 14706.70.
“Rupee found support and trades strong yet again as dollar index weakness helped rupee scale higher towards 74.00. The major move can be expected once the rupee starts trading above 74.00 and moves towards 73.50,” said Jateen Trivedi, Senior Research Analyst at LKP Securities.
“Going ahead range can be seen between 73.75-74.25 incoming sessions,” he added.
Gold prices edged down on Friday as higher U.S. Treasury yields dampened the metal’s appeal, while palladium eased off a record high scaled a day earlier.
The U.S. dollar skidded toward a fourth straight weekly decline against a basket of major peers on Friday, as the Federal Reserve stuck to its message of ultra-low interest rates for longer.
In the last four days, the rupee managed to appreciate almost 85 paise. As the dollar index is near support, we might see USDINR pair moving towards 74.6 levels again, said ICICI Direct.
The dollar-rupee April contract on the NSE was at Rs 74.37 in the last session. The open interest fell 0.97% for the May series, it added.