The rupee is finding support and has appreciated in the past few sessions. However, the Dollar index has managed to move above its intermediate hurdle of 97.5. We feel this will keep EM currencies move in check including rupee, says ICICIdirect.
Indian rupee opened flat at 75.51 per dollar on Wednesday against previous close of 75.50,amid positive domestic equity market.
On June 30 the Indian unit ended 8 paise higher at 75.50.
At 10:02 hrs IST, the Sensex is up 206.75 points or 0.59% at 35122.55, and the Nifty up 51.80 points or 0.50% at 10353.90.
"Rupee traded in range but with minor weakness as USDINR took support near 75.40 and bounced towards 75.60 on back of some buying witnessed due to uncertainty on risky assets and higher crude prices & gold prices. USDINR still seems to be in this smaller range of 75.40-75.75 & broader range of 75.00-76.40," said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.
Oil prices rose on Wednesday after an industry report showed crude inventories in the United States fell much more than expected, suggesting demand is improving even as the coronavirus outbreak spreads around the world.
The dollar held onto gains against the yen on Wednesday ahead of data expected to show U.S. manufacturing activity and hiring continued to recover from the economic shock caused by the coronavirus pandemic.