For the July-September quarter, the rupee should trade in a broad 73-75.50 band, says Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking.
Indian rupee ended lower by 9 paise at 74.32 per dollar, amid volatility saw in the domestic equity market.
It opened flat at 74.22 per dollar against previous close of 74.23 and traded in the range of 74.22-74.44.
The Sensex was down 66.95 points or 0.13% at 52482.71, and the Nifty was down 27 points or 0.17% at 15721.50.
Catch all the market action on our live blog
The dollar clung to recent gains on Wednesday as virus woes raised concerns in a market already on edge ahead of US jobs data seen as crucial to the Federal Reserve’s monetary policy outlook.
“For now, the 72.20 mark on the rupee is sacrosanct and we may not see the rupee breach this level any time soon. On the other hand, we are not expecting a sharp depreciation on the rupee below 75.50 levels, as the RBI’s forex buffer is quite strong,” said Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking:
“For the July-September quarter, the rupee should trade in a broad 73-75.50 band,” she added.
Oil prices on Wednesday extended the previous day’s small gains after an industry report showed US crude stockpiles fell last week, overriding trader and investor concerns about transportation curbs in some countries as COVID-19 cases surge.
Gold prices held steady on Wednesday as investors were cautious ahead of US jobs data due later this week, but prices were set to post their worst month since November 2016 on the U.S. Federal Reserve’s shift to a hawkish policy stance.