Going ahead, if Brexit deal is done by the Parliament, as mentioned by UK PM, then we can see further appreciation in rupee, says Rahul Gupta, Head of Currency, Emkay Global Financial Services.
The Indian rupee has recovered from the low point of the day and ended marginal higher at 71.14 per dollar, with domestic equity market ended higher for the sixth consecutive session.
Rupee opened marginally lower at 71.19 per dollar versus previous close 71.16.
The local currency touched at intra-day low of 71.30 per dollar.
The Sensex ended 246.32 points higher at 39,298.38, while Nifty was up 75.50 points at 11,661.90.
On October 17, the rupee ended up 27 paise to close at 71.16 against the US dollar, on the back of optimism over the Brexit deal amid softening crude oil prices.
Rupee rose and managed to break out of the range following a rally in domestic equities and after UK and the EU announced that a Brexit Deal has been reached. On the domestic front, in the last couple of sessions FIIs too have participated, which is supporting the rupee, said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services Private.
He expect the Brexit deal would be a short term relief but it is hardly a time to celebrate as the proposal will have to be approved by House of Commons.
Volatility for pound will remain high as more updates are expected in the next two days, he added.
According to Rahul Gupta, Head of Currency, Emkay Global Financial Services, rupee has appreciated nearly 1% in two days. The hopes of US-China trade closing the Phase-one deal along with a potential Brexit deal, has kept all emerging market currencies including rupee, afloat. Also, the dismal US economic data, fall in dollar index and speculation over third rate cut by Fed added to the strength in rupee.
Going ahead, if Brexit deal is done by the Parliament, as mentioned by UK PM, then we can see further appreciation in rupee, he added.He feels that 70.75 is a crucial support in USD/INR spot and if that breaks we can see a fall towards 70.50 level, meanwhile, 71.50 will act as a crucial resistance.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.