Rupee ends higher at 73.86 per dollar
Exporters may sell around 74.20 levels while importers may buy around 73.80 levels, says Anil Kumar Bhansali, Head of Treasury, Finrex.
Indian rupee ended higher by 7 paise at 73.86 per dollar, amid selling saw in the domestic equity market.
It opened marginally higher at 73.90 per dollar against previous close of 73.93 and traded in the range of 73.76-73.97.
At close, the Sensex was down 465.01 points or 0.95% at 48,253.51, and the Nifty was down 137.70 points or 0.94% at 14,496.50.
There is an excess of dollar supply causing the disruption in cash premiums going as high as 16%. So exporters and others sold dollar and from a high of 74.32 rupee rose to 73.85, said Anil Kumar Bhansali, Head of Treasury, Finrex.
Today if the same scenario prevails then we may again see the sell-off. RBI may have to step in to control the absurd cash and premiums levels. Exporters may sell around 74.20 levels while importers may buy around 73.80 levels, he added.
Oil prices added to overnight gains on Tuesday, buoyed as more U.S. states eased lockdowns and the European Union sought to attract more travellers, which would help offset weakened fuel demand in India as COVID-19 cases soar.
The USDINR has remained around its highest Put base of 74 strike. However, the Dollar Index reverted from 90.5 levels once again. This suggests the Put base at 74 strike is likely to remain a major level for the rupee in the near term, said ICICI Direct.
The dollar-rupee April contract on the NSE was at Rs 74.33 in the last session. The open interest rose 2% for the May series, it added.