Last Updated : Oct 05, 2020 11:12 AM IST | Source: Moneycontrol.com

Rupee trades lower at 73.21 per dollar

We expect a near-term range of 73.20 to 74.50 on the rupee, says Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.

Rakesh Patil

Indian rupee is trading lower by 7 paise at 73.21 per dollar, amid buying seen in the domestic equity market.

It opened marginally lower at 73.17 per dollar  against Thursday close of 73.14.

At 11:12 IST, the Sensex was up 493.97 points or 1.28% at 39191.02, and the Nifty was up 138.20 points or 1.21% at 11555.20.

Close

The dollar held tight ranges against its peers on Monday as investors awaited clarity on the health of U.S. President Donald Trump after he tested positive for the coronavirus, sending markets into safe-haven assets.

related news

Oil prices rose more than 1% on Monday, lifted by comments from doctors for U.S. President Donald Trump suggesting he could be discharged from hospital as soon as Monday, just a few days after his positive test for COVID-19 sparked widespread alarm.

"We are expecting the rupee to trade with a slight appreciation bias in the near-term, given the persistent dollar inflows in the domestic market and a healthy current account surplus. However, 73.20 remains a strong hurdle for the rupee, and the RBI may not be very comfortable allowing it to appreciate above those levels," said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.

"The market will be watching developments around the next round of US fiscal stimulus packages, without which the upbeat risk appetite may not be able to sustain for very long. We expect a near-term range of 73.20 to 74.50 on the rupee," she added.
The Dollar index is expected to remain in the range, post its fall below 94 levels. No major move is expected in Dollar index as data showing US nonfarm payrolls rising less than expected in September but with a drop in the unemployment rate, had little impact on currencies, as markets focused on Donald Trump’s health, said ICICIdirect.

The dollar-rupee October contract on the NSE was at 73.34 in the last session. The open interest rose 3.36% in the last session, it added.
First Published on Oct 5, 2020 10:00 am

tags #Rupee