Going ahead 73.00-73.40 range will be seen in the rupee, says Jateen Trivedi, Senior Research Analyst at LKP Securities.
Indian rupee is trading flat at 73.14 per dollar, amid selling seen in the domestic equity market.
It opened flat at 73.16 per dollar against Wednesday’s close of 73.16.
The Sensex is down 226.09 points or 0.45% at 49676.55, and the Nifty down 93.00 points or 0.62% at 14937.20.
“The Covid cases are moderating in India and Fed’s music will remain the same, so chances of USDINR bouncing are very low. Still traders are awaiting tonight’s Fed minutes for the clues about the outlook,” said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services
“The USDINR spot is hovering around 73 zone, the only fear is of RBI intervention in between 72.75-73 zone to curb any excess volatility. But in absence of RBI, the downtrend in USDINR spot may continue and USDINR spot may trade in between 72.75-73.30,” said Gupta.
Gold prices were flat on Thursday, hovering below a more than four-month high hit in the previous session, as the dollar firmed and US Treasury yields rose after the release of the minutes from the Federal Reserve’s last monetary policy meeting.
The dollar bounced off three-month lows against European currencies on Thursday after minutes from the Federal Reserve’s last policy meeting revealed there was more talk of tapering their bond purchase than investors had thought.
“After many days of positive trend rupee changed hands 180 degrees and swung low on the back of short covering witnessed in the Dollar index, the dollar which fell below 90$ a few days back took support near 89.65$ and tries to move again back above 90$ which weaken rupee from 72.95 to 73.15. Going ahead 73.00-73.40 range will be seen in the rupee,” said Jateen Trivedi, Senior Research Analyst at LKP Securities.
Oil prices fell on Thursday after a slump in the previous session, as rising US stockpiles added to concerns about a hit to demand from surging coronavirus infections in Asia and possible US rate hikes.