ICICIdirect expect the USD-INR to meet supply pressure at higher levels. Utilise upsides in the pair to initiate short positions.
The Indian rupee erased morning gains but trading higher by 7 paise at 70.85 per dollar, with domestic equity market witnessing volatility.
It opened higher at 70.89 per dollar versus previous close 70.92.
On December 10, the rupee ended 12 paise higher at 70.92 against the US dollar amid softening crude oil prices and weakening of the greenback vis-a-vis major global currencies.
The Sensex was down 35.71 points or 0.09% at 40,204.17, and the Nifty was down 14.10 points or 0.12% at 11,842.70.
Oil prices fell on Wednesday after industry data showed a surprise build in crude oil inventory in the United States and as investors waited for news on whether a fresh round of US tariffs on Chinese goods would take effect on Sunday.The dollar-rupee December contract on the NSE was at 71.03 in the previous session. Open interest declined 4.87% in the previous session. We expect the USD-INR to meet supply pressure at higher levels. Utilise upsides in the pair to initiate short positions, said ICICIdirect.