Indian rupee has erased early losses and ended at day’s high at 74.92 per dollar, amid buying saw in the domestic equity market.
It opened 14 paise lower at 75.19 per dollar against Monday’s close of 75.05 and traded in the range of 74.92-75.33.
At close, the Sensex was up 259.62 points or 0.53% at 48803.68, and the Nifty was up 76.70 points or 0.53% at 14581.50.
Indian currency market was remained shut on April 13 and April 14 on account of Gudhipadwa and Dr Baba Saheb Ambedkar Jayanti.
Also Read – Indian rupee has weakened 3% in 2021, will RBI intervene?
Depreciation in the rupee continued but writing positions are stuck in 75 strike Call, which is likely to get triggered while a further move towards 75.60 is expected. However, post the GSAP buying, rupee should cool-off, said ICICI Direct.
The dollar-rupee April contract on the NSE was at Rs 75.22 in the last session. The open interest fell 9.8% for the April series, it added.
Gold prices rose on Thursday as a weaker dollar boosted the safe-haven metal’s appeal, while investors awaited the release of weekly jobless claims and March retail sales data in the United States later in the day.
Oil prices were lower on Thursday though holding near one-month highs after futures jumped in the previous as the International Energy Agency (IEA) and others upgraded forecasts for oil demand as major economies recover from the pandemic.
“The spot rupee was quoting at 75.2 against 75.14. March month retail inflation increased at four months high eat 5.52% due to higher food and fuel prices. FII is net seller in the month of April also putting pressure on domestic currency despite of weakness in the dollar index globally,” said Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research.
“Technically, resistance for USDINR Spot is 75.40 levels. Support is shifted to 74.90 – 75.05 levels in coming session.”
“Dollar Index is trading below USD 92 level indicating for downside momentum will continue towards USD 91.70 levels. USDINR future could trade in a range of 75.20 -75.60 levels in today’s session,” said Purohit.