Rupee ends marginally higher at 73.50 per dollar
We expect the pair to move below 73.50 in the coming sessions as the dollar is likely to remain weak and move below 90 levels, says ICICIdirect.
December 28, 2020 / 04:35 PM IST
Indian rupee ended marginally higher at 73.50 per dollar, amid buying seen in the domestic equity market.
It opened flat at 73.52 per dollar against Thursday's close of 73.54 and trade in the range of 73.46-.73.61.
At close, the Sensex was up 380.21 points or 0.81% at 47,353.75, and the Nifty was up 123.90 points or 0.90% at 13,873.20.
"Due to fresh weakness in the Dollar index, the rupee started strengthening once again. We expect the pair to move below 73.50 in the coming sessions as the dollar is likely to remain weak and move below 90 levels," said ICICIdirect.
"The dollar-rupee December contract on the NSE was at 73.56 in the last session. The open interest declined marginally by 2% for the December series contract," it added.
The dollar shrugged off news of President Trump relenting on a threat to block a COVID-19 aid bill in thin trading on Monday with many investors on holiday.
"As we approach the year 2021, the rupee movement will be guided primarily by the RBI intervention in the currency market to keep the INR in check. The RBI forex reserves are near all-time high levels," said Nish Bhatt, Founder & CEO, Millwood Kane International.
"Any fall or softening in the prices of crude oil will support the rupee as India imports the bulk of its oil requirements, the pledge by global central banks to keep the system liquidity in excess is likely to weaken the USD, supporting the INR,” he added.