Rupee extends gains, trades at 71.35 per dollar
For the week, we expect USD/INR to continue to trade in between 71.45-72, says Rahul Gupta, Head of Research-Currency, Emkay Global Financial Services.
November 27, 2019 / 03:17 PM IST
The rupee extended the gains and trading near the day's high level at 71.35 per dollar, with Indian domestic equity market also trading higher but off day's high.
It opened higher at 71.44 per dollar on Wednesday versus previous close 71.48.
On November 26, the local currency ended at day's high and appreciated by 25 paise to close at 71.48 against the US dollar from its Monday's close of 71.73.
The Sensex was up 198.12 points or 0.49% at 41019.42, and the Nifty was up 63.20 points or 0.53% at 12100.90.
“Broadly market is looking for a Phase-One trade deal before the end of 2019. This optimism led to depreciation in USD/INR. Then, government’s news of proposing new industrial policy further weighed on spot, however, it couldn’t breach the crucial support zone of 71.45," said Rahul Gupta, Head of Research-Currency, Emkay Global Financial Services.
"In the coming days, we expect a small spurt in spot towards 71.75. For the week, we expect USD/INR to continue to trade in between 71.45-72,” he added.
Oil fell on Wednesday after an industry report showed an unexpected build in US crude inventories, but optimism around the signing of the first phase of a US-China trade deal capped a deeper slide in prices.
The dollar-rupee December contract on the NSE was at 71.71 in the previous session. Open interest increased 35.23% in the previous session, said ICICIdirect.
We expect the USD-INR to meet supply pressure at higher levels. Utilise upsides in the pair to initiate short positions, it added.