Rupee ends higher at 74.01 per dollar

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Indian rupee ended 8 paise higher at 74.01 per dollar, amid buying seen in the domestic equity market.

It opened flat at 74.11 per dollar against previous close of 74.09 and traded in the range of 73.87-74.11.

At close, the Sensex was up 445.87 points or 1.01% at 44,523.02, and the Nifty up 128.70 points or 1.00% at 13,055.20.

"USD/INR Future is trading below its 11-SMA on an hourly chart placed at 74.18, which is the immediate resistance level for USDINR for the coming session. The RSI indicator is ranging around 45 on the daily chart which indicates positive momentum in pairs," said Kshitij Purohit, Product Manager Currency & Commodity, CapitalVia Global Research.

"The trend is positive for the next session and if it breaks above the resistance level 74.20 then we may expect more bullish momentum towards 74.35. The trading range for pairs is likely to be in between 74.15-74.25 in upcoming sessions," he added.

Oil prices held gains on Tuesday as news of a third promising vaccine candidate spurred hopes of a quick recovery in oil demand, while U.S. President-elect Joe Biden received the go-ahead to begin his presidential transition.

The USD-INR has moved further closer to its highest Put base of 74 strike. However, the dollar index reverted from 92 levels once again. This suggest the Put base at 74 strike is likely to remain a major level for the rupee in the near term, said ICICIdirect.

The dollar-rupee November contract on the NSE was at 74.09 in the last session. The open interest fell almost 10% for the November series contract, it added.