ICICI Direct feels that the rupee should move towards 73.5 levels.
Indian rupee is trading lower at 73.03 per dollar, amid buying seen in the domestic equity market as RBI kept the key rates unchanged.
It opened lower at 73.02 per dollar against Thursday’s close of 72.91.
Reserve Bank of India (RBI) has kept the repo rate unchanged at 4 percent and reverse repo rate unchanged at 3.35% with accommodative monetary policy stance.
On June 3, rupee ended at day’s high at 72.91 per dollar against Wednesday’s close of 73.08.
The Sensex was up 94.52 points or 0.18% at 52326.95, and the Nifty was up 25.30 points or 0.16% at 15715.70.
Also Read – RBI stance on inflation, growth and government securities acquisition program key for rupee movement, going ahead
Oil prices dropped on Friday as concerns about the patchy roll-out of anti-coronavirus vaccinations around the globe tempered optimism earlier in the week that demand for fuels was recovering from the depths of the pandemic.
Gold prices languished near two-week lows on Friday and looked set for their worst week in three months after robust U.S. economic data boosted the dollar and bond yields, ahead of much awaited May non-farm payroll numbers.
The dollar was perched near multi-week highs on Friday, basking in its biggest gains in about a month after robust jobs data threw investors’ focus on to the strength of the US recovery and on the possibility of it driving policy tightening.
After appreciating almost 17 paise, USDINR moved towards its support of 73. As the Dollar index fell sharply, we feel the rupee should move towards 73.5 levels, said ICICI Direct.
The dollar-rupee June contract on the NSE was at Rs 73.11 in the last session. The open interest rose 1.6% for the June series, it added.