USDINR to witness a range bound movement between 74.20 and 74.50 levels in coming sessions, said ICICI Direct.
Indian rupee is trading lower at 74.22 per dollar, amid buying seen in the domestic equity market.
It opened lower at 74.22 per dollar against Friday’s close of 74.15.
The Sensex was up 162.73 points or 0.30% at 54440.45, and the Nifty was up 45.00 points or 0.28% at 16283.20.
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The dollar climbed against major peers on Monday, reaching a four-month high versus the euro, as traders positioned for an earlier tapering of Federal Reserve stimulus.
Oil prices dropped 2% on Monday, extending last week’s steep losses on the back of a rising US dollar and concerns that new pandemic curbs in Asia, especially China, may set back the global recovery in fuel demand.
Gold skidded as much as 4.4% to a more than four-month low on Monday as robust US jobs data stoked fears that the Federal Reserve would raises rates quicker than expected, increasing the opportunity cost of holding non-interest bearing bullion.
By looking at USDINR options data, the USDINR has significant open interest at ATM strike of 74.25, suggesting a range bound movement of 74.20 and 74.50 levels in coming sessions, said ICICI Direct.
The dollar-rupee August contract on the NSE was at Rs 74.28 in the last session. The open interest fell almost 0.60% for the August series, it added.
