Rupee ends marginally higher at 73

Rupee ends marginally higher at 73.53 per dollar

rupee

Indian rupee ended marginally higher at 73.53 per dollar, amid selling seen in the domestic equity market.

It opened 19 paise lower at 73.77 per dollar against previous close of 73.58 and remained in the range of 73.53-73.78.

At 14:32 IST, the Sensex was down 231.45 points or 0.57% at 40475.86, and the Nifty was down 66.50 points or 0.56% at 11871.20.

“As of now, we are expecting the rupee to trade with a depreciating bias in the near-term, given RBI’s persistent attempts to cap an upside in the unit. Moreover, the dollar index also has some scope to rebound from current levels, if the US stimulus package does not materialize,” said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.

“Volatility on the local unit is expected to increase in the run-up to the US elections, and the rupee could depreciate towards the 74.20 mark in the coming sessions,” she added.

The U.S. dollar steadied against most major currencies on Thursday as U.S. stimulus talks remained the focus for markets with trading buffeted over recent days by the extent of progress made on the potential size of the aid package.

Oil prices dropped in early trade on Thursday, adding to heavy losses overnight, after a build in U.S. gasoline inventories pointed to a deteriorating outlook for fuel demand as coronavirus cases soar in North America and Europe.

“The market sentiments are hinged on to the US fiscal stimulus negotiations. There is a potential for a stimulus bill but at the same time there is a lot of caution on the back of it. The subdued dollar index is keeping Asian currencies including rupee positive,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

“The election event volatility is yet to begin and the USDINR spot is respecting the strong support of 73. Until it trades above that, prices will remain in between 73-73.60. Only a fall below 73 may drag prices towards 72.75, keeping 73.60 strong resistance,” he added. Credit: MoneyControl

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