Rupee extends losses, trades lower at 73.22 per dollar


We feel the rupee should trade in a range with support now pegged at 72.90 levels, says ICICI Direct.

Representative image

Representative image

Indian rupee has erased some of the intraday losses but still trading lower at 73.09 per dollar, amid selling seen in the domestic equity market.

It opened 18 paise lower at 73.08 per dollar against Tuesday’s close of 72.90.

The Sensex was down 345.46 points or 0.67% at 51589.42, and the Nifty was down 72 points or 0.46% at 15502.90.

Gold prices on Wednesday retreated from a near five-month high marked in the previous session, as an uptick in bond yields weighed on the safe-haven metal while strong U.S. economic data prompted the shift back into riskier assets.

USDINR pair managed to witness bounce from its support and moved above 73 levels. Due to aggressive Open Interest addition in ATM Straddle of 73, we feel the rupee should trade in a range with support now pegged at 72.90 levels, said ICICI Direct.

The dollar-rupee June contract on the NSE was at Rs 73.17 in the last session. The open interest remained almost flat for the June series, it added.

The dollar clung to small gains from overnight on Wednesday, edging back from near a five-month trough versus major peers, as a pick up in US manufacturing kept bets alive for a quicker normalisation of Federal Reserve policy.

Oil prices rose on Wednesday after OPEC and its allies stuck to their plan to cautiously return oil supply in June and July while expecting fuel demand to rebound strongly during the US summer.

“Rupee made a depreciated start at 73.0850 as demand for dollars increased due to CNH depreciating towards 6.40 after making a high of 6.34. With NFPR and monetary policy on Friday we are not expecting a big depreciation beyond 73.50 but it will all depend on the demand of dollar which seems to be high at the moment,” said Anil Kumar Bhansali, Head of Treasury – Finrex Treasury Advisors.

“Exporters may sell near to 73.25 while importers may buy near to 72.90 during the day, he added.

Moneycontrol News