Rupee ends higher at 73.57 per dollar

We believe there may be an intermediate bounce in the Dollar index. However, higher levels for the rupee remain a shorting opportunity, says ICICIdirect.

Moneycontrol News

December 14, 2020 / 03:44 PM IST

Indian rupee ended 8 paise higher at 73.57 per dollar, amid buying seen in the domestic equity market.

It opened flat at 73.64 per dollar against Friday's close of 73.65 and traded in the range of 73.47-73.64.

At close, Sensex was up 154.45 points or 0.34% at 46,253.46, and the Nifty was up 44.30 points or 0.33% at 13,558.20.

Volatility remained high in the forex market in anticipation of the Brexit deal. We believe there may be an intermediate bounce in the Dollar index. However, higher levels for the rupee remain a shorting opportunity, said ICICIdirect.

The dollar-rupee December contract on the NSE was at 73.87 in the last session. The open interest increased marginally by 1.8% for the December series contract, it added.

Oil prices rose on Monday, pushing Brent back above $50 a barrel, buoyed by hopes that a rollout of coronavirus vaccines will lift global fuel demand, while an extension of Brexit talks eased jitters on that front for now.

"Due to coronavirus widespread, the dollar is loosing its safe haven properties and is keeping USDINR spot below the psychological level of 74. Also, next week is the Fed policy and we expect Powell to update the forecasts for growth and inflation along with dovish stance," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

"However, the downside risks to 'no deal' Brexit will keep dollar bulls intact, so unless the spot doesn't consistently trade above 74, the trading range would continue to be 73.25-74. If 74 breaks then prices can surge towards 74.20 zone," he added.

Moneycontrol News

TAGS: #Rupee

first published: Dec 14, 2020 10:00 am