Rupee erases early losses, but ends marginally lower at 75.04 per dollar

Indian rupee erased early losses but ended marginally lower at 75.04 per dollar, amid buying seen in the domestic equity market.

It opened 14 paise lower at 75.15 per dollar against previous close of 75.01 and traded in the range of 74.99-75.18.

At 14:33 IST, the Sensex was up 671.98 points or 1.82% at 37611.58, and the Nifty was up 183.20 points or 1.68% at 11074.80.

As the Dollar index saw sharp reversal from its two year’s low and started moving up, the rupee also depreciated. However, considering high Call base at 75.50 strike, current levels are crucial in the downtrend, said ICICIdirect:.

The dollar-rupee contract on the NSE was at 75.45 in the last session. The open interest in August series remained almost flat while the next series saw addition of almost 10% shares, it added.

A nascent rebound in the dollar paused on Tuesday, as investors weighed mixed but encouraging economic data against slow progress toward a U.S. government spending package and another week of rising coronavirus deaths.

Oil prices fell in early trade on Tuesday on concerns about fuel demand growth as a fresh wave of COVID-19 infections around the world sparks tighter lockdowns just as major producers ramp up output.