If 75.25 breaks expect prices to fall towards 75 and then 74.85 zone, says Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
Indian rupee has erased early losses and trading marginally higher at 75.44 per dollar, amid selling seen in the domestic equity market.
It opened lower at 75.58 per dollar against previous close of 75.47.
On May 13, Indian rupee erased its early gains but ended marginally higher at 75.47 per dollar, amid buying seen in the domestic equity market post prime minister announced fiscal package.
Oil prices crept up on Thursday, supported by a surprise decline of U.S. crude inventories, but gains were capped by worries that a potential second wave of the coronavirus pandemic might trigger fresh lockdowns and slam fuel demand once again.
"The surprise move of fiscal stimulus by the government had a positive impact on rupee. However, globally, risk sentiments are negative and we have no clarity over the government expenditure plan. Positive comments by FM Sitharaman may cheer rupee but it will be short-lived as the fragility over coronavirus still continues," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
"The USD/INR spot has been respecting the strong support of 75.25, and bouncing from there. If 75.25 breaks we expect prices to fall towards 75 and then 74.85 zone. While, 75.75 will act as a strong resistance," he added.Special Offer: Subscribe to Moneycontrol PRO’s annual plan for ₹1/- per day for the first year and claim exclusive benefits worth ₹20,000. Coupon code: PRO365
