Despite the ongoing risk on momentum seen in most emerging markets, Indian equities paused and witnessed some profit booking. Deprecation in the rupee can be attributed to that, says ICICIdirect.
Indian rupee erased some of early gains but trading higher at 75.47 per dollar, amid buying seen in the domestic equity market.
It opened 18 paise higher at 75.39 per dollar against previous close of 75.57.
At 11:12 IST, the Sensex was up 75.16 points or 0.22% at 34055.86, and the Nifty was up 44.20 points or 0.44% at 10073.30.
The dollar-rupee contract on the NSE was at 75.72 in the last session. The open interest declined by almost 3.4 percent in June series while it has increased almost 18 percent in the July series, said ICICIdirect.
Despite the ongoing risk on momentum seen in most emerging markets, Indian equities paused and witnessed some profit booking. Deprecation in the rupee can be attributed to that, it added.
Oil prices eased slightly on Friday as markets wait to see whether major producers will commit to an extension of record production cuts to support oil prices.
"Today rupee is trading on a positive note towards appreciation. It is appreciating by 0.26% and touched the low of 75.33 levels. Recovery in world economy and in Indian equity markets provide support to rupee," said Anuj Gupta, DVP–Commodities & Currencies Research, Angel Broking.
"Weakness in dollar is also supportive for strength in Indian rupee. We are expecting it may test 75.10 to 75.00 levels soon, he added.
