Going forward, only a breach of 76.60 mark would steer it towards new record lows in coming days, else we expect the domestic currency to hold steady, says Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.
Indian rupee has erased early losses and trading at day's high at 76.21 per dollar, amid volatile trade seen in the domestic equity market.
Domestic unit opened 14 paise lower at 76.28 per dollar against previous close of 76.14.
At 11:20 IST, the Sensex was up 160.28 points or 0.47% at 34368.33, and the Nifty was up 54 points or 0.54% at 10145.70.
"Indian rupee has weakened to a three week low amid jitters about the resurgence of new coronavirus infections around the world, which are dampening hopes of a quick recovery from the economic fallout of COVID-19. Further undermining sentiments for the currency is the uncertainty with regards to the current border stand-off between India and China," said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.
"Another catalyst for the depreciation in rupee is the retreat in dollar index from three month lows. On the contrary, the local unit is still underpinned by persistent fund inflows due to developments with regards to reopening of the economy."
"Going forward, only a breach of 76.60 mark would steer it towards new record lows in coming days, else we expect the domestic currency to hold steady," she added.
Oil prices pushed higher in early trade on Friday, building on gains in the previous session, after OPEC producers and allies promised to meet their supply cut commitments and two major oil traders said demand was recovering well.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
