Technically, 75 is a crucial support and break off which can take spot towards 74.50 or bounce from there can take prices towards 76.50, says Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
Indian rupee opened flat at 75.59 per dollar on Monday against Friday's close of 75.58, amid buying seen in the domestic equity market.
On June 5 domestic unit erased all its intraday gains and ended flat at 75.58 per dollar.
At 10:19 IST, the Sensex was up 480.53 points or 1.40% at 34767.77, and the Nifty was up 144.50 points or 1.42% at 10286.70.Also Read - Rupee likely to move sideways on FII inflow, US job data; deploy ‘short strangle’
The U.S. dollar fell against the Antipodean currencies and the British pound after surprising improvement in U.S. labour market data bolstered expectations for economic recovery, which reduced safe-harbour demand for the greenback.
"The USD/INR spot has been trading in a very tight range 75-75.65 as investors await catalyst to move forward and take positions. The expectations of more stimulus from US government was driving the optimism in the market however, Trump administration postponed the meeting to next week crashing investors expectations," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
"Currently, the spot is in indecisive market and going forward the focus will be on Jio-Mubadala deal related dollar flows, US-China trade spat and whether there is a second wave of infection."
"Technically, 75 is a crucial support and break off which can take spot towards 74.50 or bounce from there can take prices towards 76.50," he added.
Oil prices rose more than 2% early on Monday to their highest in three months after OPEC and its allies including Russia agreed to extend record oil production cuts until the end of July.
