Over this week, the focus will be on the US Fed meeting on Wednesday. Ahead of that USDINR spot may remain within a range of 74.20 and 74.70 on spot, says Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities.
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Indian rupee is trading flat at 74.41 per dollar, amid volatile trade seen in the domestic equity market.
It opened marginally higher at 74.36 per dollar against previous close of 74.42.
The Sensex was up 56.21 points or 0.11% at 52908.48, and the Nifty was up 26 points or 0.16% at 15850.50.
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“Low volatility phase continues as RBI remains a major $ buyer and FPI flows capping the uptrend. Spot closed flat 74.42. July futures are trading flat near 74.44 levels,” said Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities.
“Over this week, the focus will be on the US Fed meeting on Wednesday. Ahead of that USDINR spot may remain within a range of 74.20 and 74.70 on spot,” he added.
The US dollar hovered just below recent peaks on Tuesday, as investors turned to this week’s Federal Reserve meeting for clues on the policy outlook, while cryptocurrencies pulled back sharply after an attempt to break out of a monthslong range.
Oil prices were steady on Tuesday with investors betting tight supply and rising vaccination rates will help offset any impact on demand due to surging COVID-19 cases worldwide.
“The USDINR has moved towards the lower band of consolidation. Looking at the closure in OTM strike Calls we feel a move towards 75 could be seen in coming days,” said ICICI Direct.
The dollar-rupee July contract on the NSE was at Rs 74.45 in the last session. The open interest fell almost 5.1% for the July series, it added.
