Until 76 doesn’t break in USDINR spot, it will continue to remain afloat. The immediate support lies around 75.75, and resistance around 76.50, says Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
Indian rupee ended flat at 76.14 per dollar, amid buying seen in the domestic equity market.
It opened flat at 76.15 per dollar against Wednesday's close of 76.16.
At 14:38 IST, the Sensex was up 606.08 points or 1.81% at 34114.00, and the Nifty was up 182.75 points or 1.85% at 10063.90.
"Geopolitical Tension between Indian & China is a major cause of depreciation of USDINR. Although uncertainity in global financial market and increase cases of Covid-19 also negative for the currency," said Anuj Gupta DVP Commodities and Currencies Research, Angel Broking.
"We expect USDINR may depreciate further and it is expected that USDINR may test 76.60 - 76.80 levels soon. Traders can go for buy in USDINR at 76 - 76.10," he added.
Oil prices fell more than 1% in early trade on Thursday as a spike in new coronavirus cases in China and the United States renewed fears that people would stay home and stall a recovery in fuel demand even as lockdowns ease.
The dollar held onto gains on Thursday as growing concerns about a rise in coronavirus cases underpinned safe-haven demand for the U.S. currency.
“The geopolitical tensions between India and China have brought back the risk-off mood. We don’t expect the dispute to escalate and both the sides will contain it, till then the market will remain skittish across markets due to these geopolitical tensions. Any escalation or uncertainty will lead to a sharp bull-run in USD/INR spot," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
"Until 76 doesn’t break in USDINR spot, it will continue to remain afloat. The immediate support lies around 75.75, and resistance around 76.50," he added.
Fitch has revised India’s outlook to negative and affirmed rating at ‘BBB-'. The medium-term GDP growth outlook may be negatively impacted by asset quality issues, while COVID pandemic has significantly weakened growth outlook for this year. It expect economy activity in India to contract 5 percent in FY21, reported CNBC-TV18.Special Offer: Subscribe to Moneycontrol PRO at ₹1 per day for the first year. Coupon code: PRO365. Offer available on desktop & android only. *T&C Apply
