71.10 is a crucial support in spot, a break of which can take prices towards 71 and below, until then we expect the USD/INR spot to trade within 71-71.50 range, says Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
The Indian rupee erased its losses and trading flat at 71.38 per dollar, with selling seen in the domestic equity market.
It opened lower by 7 paise at 71.43 per dollar against Friday's close of 71.36.
On Friday, the Indian rupee ended lower at 71.36 against the US dollar tracking heavy selling in domestic equities and strengthening of the American currency in the overseas market.
the Sensex was down 20.71 points or 0.05% at 41237.03, and the Nifty was down 12.70 points or 0.10% at 12100.80.
“Ever since the budget, USD/INR spot has been consolidating in a very tight range of Rs 71.10-71.50. Next week, we can see some FII/FPI participation in Avenue Supermarts (DMart) stake sale. This OFS related dollar inflows may support rupee," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
"However, focus will continue to be on the coronavirus and what extent it is creating any disruption to global growth, thus, 71.10 is a crucial support in spot, a break of which can take prices towards 71 and below, until then we expect the USD/INR spot to trade within 71-71.50 range,” he added.
Oil prices edged lower on Monday as investors brace for economic data in Asia due this week that should give a reading on how China’s coronavirus epidemic has affected oil demand.The euro was on the back foot on Monday, as concerns mounted about weakening economic growth in Europe at a time financial markets and policymakers fret about a new threat to the global economy from a fast spreading coronavirus in China.
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