Going ahead the rupee can be seen between 73.05-73.55, says Jateen Trivedi, Senior Research Analyst at LKP Securities.
Indian rupee is trading higher at 73.20 per dollar, amid buying seen in the domestic equity market.
It opened flat at 73.27 per dollar against Friday’s close of 73.29.
Sensex was up 758.83 points or 1.56% at 49491.38, and the Nifty was up 226.60 points or 1.54% at 14904.40.
“On Friday, rupee traded strong near 73.25 on back of retreat from dollar which inched below USD 90.50 again. A strong reading on US wholesale prices and jobless claims on Thursday failed to spark a renewed uptick in Treasury yields, but currency seems to be reading positive cues of vaccinations overall and likely of covid-19 second wave to cool off. Going ahead the rupee can be seen between 73.05-73.55,” said Jateen Trivedi, Senior Research Analyst at LKP Securities.
The US dollar found pockets of support in Asia on Monday, but struggled to post gains, as investors are heavily positioned for it to fall further while the US Federal Reserve holds interest rates low and US trade and current account deficits grow.
Gold prices rose to a three-month high on Monday, as a weaker dollar and a dip in Treasury yields boosted metal’s appeal after data last week showed US retail sales unexpectedly stalled in April.
Friday’s drop erases some of a two day rally in the US dollar after data on Wednesday showed US consumer prices increased after nearly 12 years. With the US dollar sustaining below 90.5, we feel the rupee is likely to appreciate towards 73 levels, said ICICI Direct.
The dollar-rupee May contract on the NSE was at Rs 73.45 in the last session. The open interest rose almost 1.5% for the May series, it added.
Oil prices edged lower on Monday as the recovery of a major US pipeline network eased concerns over supply and a new wave of COVID-19 restrictions in Asia fuelled fears of lower demand.