The USDINR is likely to remain volatile due to July series settlement today, says ICICI Direct.
Indian rupee is trading flat 74.45 per dollar, amid selling seen in the domestic equity market.
It opened marginally higher at 74.43 per dollar against previous close of 74.46.
The Sensex was down 519.14 points or 0.99% at 52059.62, and the Nifty was down 154.10 points or 0.98% at 15592.40.
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“USDINR is once again stuck in a narrow and listless range with spot USDINR closing just 4 paise higher 74.46. July futures is trading 4 paise higher at 74.48,” said Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
“A sharp drop in Chinese currency triggered a depreciation in Rupee. However, the gains in USDINR were limited as corporate flows capped the upside. Over the near term we expect a range of 74.30-74.60,” he added.
Oil prices climbed on Wednesday after industry data showed US crude and product inventories fell more sharply than expected last week, reinforcing expectations that demand will outstrip supply growth even amid a surge in COVID-19 cases.
Gold prices were flat on Wednesday, holding near the key psychological level of $ 1,800 per ounce, as investors await the U.S. Federal Reserve’s meeting for hints on policy tapering plans.
“The USDINR is likely to remain volatile due to July series settlement today. However, the August series is starting with huge premiums and selling is expected in August contract, said ICICI Direct.
The dollar-rupee July contract on the NSE was at Rs 74.48 in the last session. The open interest fell almost 27.1% for the July series, it added.
