We see USD/INR trading in between 74.75-75.75. Only heavy inflows may cap the upside in USDINR spot, says Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
Indian rupee ended flat at 75.19 per dollar on July 13, amid volatile trade seen in the domestic equity market.
It opened marginally higher at 75.15 per dollar against Friday's close of 75.20.
At 14:15 IST, the Sensex was up 64.75 points or 0.18% at 36659.08, and the Nifty was up 23.90 points or 0.22% at 10791.90.
"After depreciating for last two-week, last week we saw a rise in USD/INR spot. The spot respected the crucial support of 74.50 and bounced towards 75.30 zone mainly on coronavirus concerns and RBI intervention. Also, the fear that renewed lockdown may derail economic recovery all over the world, led traders seek shelter of gold, which is a safe-haven asset," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
"The MCX Gold hit al time high of 49348, however some profit-booking is seen. Going ahead, we expect the caution surrounding the impact and duration of virus may keep all riskier assets on an edge, including rupee,".
"We see USD/INR trading in between 74.75-75.75. Only heavy inflows may cap the upside in USDINR spot. While, in gold the recent high of 49348 will act as a crucial resistance, unless the level is broken, we may see some fall in gold prices until 47500. However, if prices continue to trade above 49500 then only we can expect a rally towards 50000," he added.
Oil slipped in early Asian trade on Monday as traders eyed an OPEC technical meeting this week which is expected to recommend an easing in supply cuts that have been propping up crude prices.
Gold prices edged higher on Monday, holding above the key $1,800-per-ounce level, as worries over surging coronavirus cases around the world kept the safe-haven metal underpinned.