ICICI Direct feel only a sustainable close above 75 would open up more upsides. Until then, it is likely to remain in a range.
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Indian rupee extended the early gains and trading at day’s high at 74.34 per dollar, amid buying seen in the domestic equity market.
It opened 18 paise higher at 74.43 per dollar against Tuesday’s close of 74.61.
“USD/INR spot closed 26 paise lower at 74.61 and July futures on NSE closed 74.71 on the back of recovery in global stock markets and improving risk sentiments. At the same time, lumpy corporate flows may have pushed USDINR lower as tomorrow being a holiday kept large buyers away from the market,” said Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities.
“Bias continues to be of a range between 74.40 and 75.00 levels on spot,” he added.
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The safe-harbour U.S. dollar and yen remained on the back foot on Thursday, after pulling back from multi-month highs amid a recovery in risk appetite as strong earnings lifted Wall Street stocks.
Oil prices held on to most of their gains from the previous session on Thursday, as signs of stronger demand helped offset an unexpected rise in U.S. inventories.
Gold prices fell on Thursday, hovering near a more than one-week low, weighed down by a stronger dollar and a rebound in risk sentiment as investors looked past economic threats from rising cases of the Delta coronavirus variant.
The USDINR has again reverted from its highest Call base of 75. We feel only a sustainable close above this level would open up more upsides. Until then, it is likely to remain in a range, said ICICI Direct.
The dollar-rupee July contract on the NSE was at Rs 74.71 in the last session. The open interest fell almost 8.7% for the July series, it added.
