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Last Updated : Nov 08, 2019 02:04 PM IST | Source: Moneycontrol.com

Rupee trades lower at 71.16 per dollar

ICICIdirect expect the USD-INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.

The Indian rupee has recovered from the day's low but trading lower by 20 paise at 71.16 per dollar, while domestic equity market are trading lower in volatile trading.

declined in the early trade on November 8. It opened lower by 34 paise at 71.30 per dollar versus previous close 70.96.

On November 7, the rupee ended flat at 70.96 after it pared its initial losses against the US dollar after the US-China trade deal hopes enthused investor sentiments.

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Sustained foreign fund inflows supported the local currency though the gains were capped by hardening crude oil prices.

The Sensex is down 68.50 points or 0.17% at 40585.24, and the Nifty down 27.00 points or 0.22% at 11985.

"Moody's decision to change its outlook to negative from stable is a matter of concern. But it is unlikely to have major impact on the rupee in the near term," said Rushabh Maru, Research Analyst - Currency and Commodity, Anand Rathi Shares and Stock Brokers.

"There is lot of optimism regarding the trade deal between the US and China. Hence, this may provide relief to the rupee. Domestic and global equities remain strong. This may also support the rupee."

"Focus will now shift to India's macroeconomic data to be released in the next week. In the near term the rupee may trade in the range of 70.80 and 71.60," he added.

The dollar-rupee November contract on the NSE was at 71.04 in the previous session. Open interest increased 7.67% in the previous session, said ICICIdirect.

We expect the USD-INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions, it added.

Gold prices on Friday hovered near a one-month low hit in the previous session after China and the United States agreed to roll back tariffs as part of the first phase of a trade deal, stoking investors towards riskier assets

US crude oil futures fell in the morning trade amid fading hopes that a deal to end the lingering trade war between Washington and Beijing would be signed any time soon, the gloom compounded by rising crude inventories in the United States

The dollar held on to its gains versus the yen and the Swiss franc as a China-US agreement to roll back tariffs on each others’ goods supported riskier assets, even as some reports suggest a preliminary trade pact is far from a done deal.

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First Published on Nov 8, 2019 09:02 am

tags #Rupee

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