On the options front, the USDINR has significant open interest at 74.25 Put strike. It suggests that USDINR is likely to consolidate above 74.25 levels, says ICICI Dierct.
Indian rupee is trading lower at 74.41, amid volatile trade seen in the domestic equity market.
It opened 15 paise lower at 74.41 per dollar against previous close of 74.26.
The Sensex was up 106.76 points or 0.20% at 54509.61, and the Nifty was up 4.50 points or 0.03% at 16262.80.
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The dollar was buoyant in early Tuesday trade as a run of strong U.S. job figures solidified expectations the U.S. Federal Reserve could soon start tapering its massive coronavirus-driven stimulus.
On the options front, the USDINR has significant open interest at 74.25 Put strike. It suggests that USDINR is likely to consolidate above 74.25 levels. However, positive domestic equities and easing oil prices will limit the depreciation of rupee, said ICICI Direct.
The dollar-rupee August contract on the NSE was at Rs 74.42 in the last session. The open interest rose almost 2% for the August series, it added.
Oil prices rose on Tuesday, edging up from a three-week low in the previous session, but gains are likely to be limited on worries that rising COVID-19 cases and restrictions in China will dent fuel demand.
Gold prices languished near multi-month lows on Tuesday, hurt by a rise in U.S. bond yields and a stronger dollar after robust U.S. jobs data last week raised bets over the Federal Reserve tapering stimulus earlier than expected.
