Rupee trades higher at 75.61 per dollar

Indian rupee extended the early gains and trading higher by 14 paise, amid recovery seen in the domestic equity market.

It opened marginally higher at 75.71 per dollar versus previous close of 75.75.

On May 28 the domestic currency ended marginally lower at 75.75 per dollar.

At 11:17 IST, the Sensex was down 26.17 points or 0.08% at 32174.42, and the Nifty was up 12.85 points or 0.14% at 9502.95.

The dollar-rupee contract on the NSE was at 76.01 in the last session. The open interest fell almost 1.9% during the last session, said ICICIdirect.

The Dollar index came under pressure on the back of contracting GDP. USD-INR has moved towards its sizeable Call base of 76. We feel a marginal retracement can be seen towards 75.5 levels in coming days, it added.

Oil prices edged lower on Friday after US inventory data showed lacklustre fuel demand in the world's largest oil consumer while worsening US-China tensions weighed on global financial markets.

"Strength in greenback has been the primary reason for not letting the rupee to appreciate, in spite of the fact that equities have been marching on the higher trajectory and sentiments are improving on the back of lockdown easing across various economies. Sweeping economic packages across the globe have worked as a catalyst in leading to strong rebound across the financial markets," said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.

"On the other hand, souring relations between the two economic powerhouses-US and China, due to the trade related issues, coronavirus origin and now because of China’s crackdown on Hongkong are leading to safe haven flows towards the dollar."

"This should keep the rupee in a tight range at least in the near term, where it is likely to gravitate in the band of 76.60 -74.80," she added.