The currency market was shut on Friday, April 10 on account of Good Friday.
Indian rupee has recovered from the lows and ended flat at 76.27 on April 13, amid selling seen in the domestic equity market.
It opened flat at 76.29 per dollar and touched intraday low of 76.40.
The currency market was shut on Friday, April 10 on account of Good Friday.
On April 9 the Indian rupee ended marginally higher at 76.28 per dollar.
"Every week rupee is breaching fresh record lows, now the level is 76.54 and it is difficult to say where will it be from here. But uncertainty and fragile market sentiments over COVID-19 will continue to keep under pressure. Further pressure will come from the uptick in crude and surge in dollar index," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
"Also, OTC timings have been trimmed to 10AM-2PM, and it is an illiquid, pessimistic market at this point in time and won’t be surprised if 77.50 is breached next week. So broadly, USD/INR may trade within 75.70-77.50 with a bullish bias next week," he added.
Gold prices were little changed on Monday but held near a one-month high scaled last week as mounting worries about the global economic outlook due to the novel coronavirus outbreak, and the US Federal Reserve’s stimulus measures kept bullion elevated.
Also Read - Here are the factors that are driving the Indian rupee
Oil prices jumped more than $1 a barrel on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won't be enough to head off oversupply with the coronavirus pandemic hammering demand.
"After a small breather, the Indian rupee has again rolled on the downwards trajectory to test fresh record lows of 76.55 mark, amid continued economic uncertainty and fragile investor sentiments due to growing concerns of coronavirus led economic slowdown," said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.
"Further exerting pressure on the local unit has been the hardening dollar index, persistent foreign fund outflows and retreat in oil prices from multi-year lows. This further skews the bias for the domestic currency on the negative side. The local unit has breached the crucial support of 76.25 levels, and now seems primed to test further lows of around 77.50 mark in coming days," she added.
The dollar-rupee April contract on the NSE was at 76.70 in the previous session. The open interest has increased by 10% during the session. Despite positive moves in equities, the rupee has failed to show sign of any appreciation. We believe weakness may continue and one should utilise downsides in the pair to initiate long positions, said ICICIdirect.Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now!
