Indian rupee erased the early losses and ended at day’s high at 73.34 per dollar, amid buying saw in the domestic equity market for the fourth straight session.
It opened lower by 13 paise at 73.63 per dollar against Friday’s close of 73.51 and traded in the range of 73.33-73.48.
At close, the Sensex was up 295.94 points or 0.60% at 49,502.41, and the Nifty was up 119.20 points or 0.80% at 14,942.40.
“The USDINR trading range will mostly depend on how DXY reacts to NFP data. If improving economic data stokes inflation worries and leads to expectations that the Fed will reduce monetary stimulus, that could boost US yields and the dollar,” said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.
“Technically, USDINR spot is hovering near the crucial support zone of 73.50. A break below 73.50 will push the spot to 73.25-73.00, while a reversal may push USDINR spot towards the crucial resistance of 74.25,” Gupta Said.
Crude prices climbed more than 1% on Monday after a major cyber attack that forced the shutdown of critical fuel supply pipelines in the United States, highlighting the fragility of oil infrastructure.
Ongoing weakness in the Dollar index helped the USDINR pair to move towards 73.50 levels while the rupee remained largely unchanged against other currency pairs. The closure among Put writers and buoyant equities may trigger further appreciation from here onwards, said ICICI Direct.
The dollar-rupee April contract on the NSE was at Rs 73.67 in the last session. The open interest declined almost 3% for the May series during the last trade, it added.
The dollar languished near a more than two-month low versus major peers on Monday as investors continued to assess the implications for monetary policy of a disappointing U.S. employment report, ahead of inflation data this week.
Gold prices on Monday hovered close to a near three-month high hit last week after weaker-than-expected U.S. jobs data cemented hopes that interest rates will stay low for some time, pressuring the dollar and boosting bullion’s appeal.
Rupee was in a gaining mood as inflows, reversal of positions, and lack of importer buying pulled it up to 73.50 levels which was considered a support. The forward premiums normalized as State run banks received premiums. Fall in dollar index and upside movement in equity aided to the rise in rupee,” said Anil Kumar Bhansali, Head of Treasury, Finrex.
“Expecting a range of 73-74 in the rupee this week,” he added.
