Bias continues to be downward in USDINR. We expect a range of 73.70-74.40 range over the near term, said Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities.
Indian rupee is trading flat at 74.16 per dollar, amid volatile trade seen in the domestic equity market after the Reserve Bank of India (RBI) has kept the repo rate unchanged at 4 percent.
It opened 7 paise higher at 74.10 per dollar against Thursday’s close of 74.17.
The Sensex was down 144.16 points or 0.26% at 54348.68, and the Nifty was down 27.70 points or 0.17% at 16266.90.
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Reserve Bank of India (RBI) has kept the repo rate unchanged at 4 percent and also maintained policy stance as ‘Accommodative’.
“Even though the spot closed flat near 74.17 but selling continued in USDINR futures. With equity markets in an uptrend, US Dollar Index weaker, and oil prices falling, Rupee is seeing strength against the US Dollar,” said Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities.
“Bias continues to be downward in USDINR. We expect a range of 73.70-74.40 range over the near term,” he added.
US crude oil futures were on track for their biggest weekly decline since late October on Friday, with prices coming under pressure as top consumers impose travel restrictions amid the spread of the Delta variant of the coronavirus.
The dollar was supported on Friday in the lead up to the release of U.S. employment data, as markets braced for the numbers that could make the case for faster U.S. policy tightening at a time when action in Europe and Japan remains distant.
