Expect Rupee may trade positive further and it may test 74.70 to 74.50 levels towards appreciation, says Anuj Gupta, DVP–Commodities & Currencies Research, Angel Broking.
Indian rupee gained in the early trade on Friday. It opened 41 paise higher at 74.60 per dollar against previous close of 75.01, amid positive domestic equity market.
On July 2 the domestic unit ended at the highest closing level since March 27 at 75.01 against Wednesday's close of 75.59, amid buying seen in the domestic equity market.
At 10:14 IST, the Sensex was up 143.76 points or 0.40% at 35987.46, and the Nifty was up 45.50 points or 0.43% at 10597.20.
"Yesterday, rupee is trading above 3 month high and trading at 74.88 levels on the expectation of positive outcome over India China tension, positive equity markets and expectation of recovery from potential covid-19 vaccine. Progress on the vaccine front is also supportive for rupee. We expect Rupee may trade positive further and it may test 74.70 to 74.50 levels towards appreciation," said Anuj Gupta, DVP–Commodities & Currencies Research, Angel Broking.
The dollar was hemmed into a narrow range on Friday, supported by safe-haven flows as a resurgence of the coronavirus in the United States discouraged some investors from taking on excessive risk.
Crude prices fell on Friday as the resurgence of the coronavirus globally and in the United States, the world's largest oil consumer, dimmed the prospects of fuel demand recovery.
"Rupee ended strongly up Thursday on strong inflows into local stocks even as upbeat economic data from the US diminished safe-haven appeal of dollar. Globally risk appetite improved as increasing optimism for a safe and effective COVID-19 vaccine eased concerns that another round of business lock-downs was likely. Rupee has now touched an important support zone of 75," said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.