Rupee ends lower at 73.90 per dollar

Rupee

Indian rupee erased intraday gains and ended lower at 73.90 per dollar, amid buying seen in the domestic equity market.

It opened flat at 73.79 per dollar against Friday's close of 73.78 and traded between 73.70-73.96.

BSE Sensex rose 347.42 points or 0.77% to end at 45,426.97, and the Nifty added 97.30 points or 0.73% to close at 13,355.80.

"A combination of a weak dollar index, optimism on the vaccine front, renewed round of fiscal stimulus talks in the United States and robust inflows give the rupee a slightly appreciating bias in the near term," said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.

"However, 73.20 and eventually 73 will be strong hurdles for the rupee to breach given RBI’s intervention is likely to continue in the coming sessions. We are expecting the RBI to mop up dollars in the spot market and simultaneously intervene in forwards to sterilize the liquidity impact," she added.

Oil prices fell on Monday as a continued surge in coronavirus globally forced a series of renewed lockdowns, including strict new measures in Southern California.

USD-INR December futures appreciated post monetary policy as rates remained unchanged and declined below 74 levels once again. We believe higher levels of 74.20 should remain immediate resistance and can be utilised for shorting the pair, said ICICIdirect.

The dollar-rupee December contract on the NSE was at 73.90 in the last session. The open interest remained almost unchanged for the December series contract, it added.

Gold prices steadied on Monday as grim U.S. jobs data bolstered hopes for more fiscal stimulus, although optimism around coronavirus vaccine rollouts kept gains in check.

"The dollar rupee is in a range with RBI standing on one side buying dollars and all sellers on the other. They have intervened in CF also on Friday to ensure rupee liquidity is not passed on. The RBI has many tools and will use it appropriately as and when required. Near term imports may be covered near 73.65 while exports for say December end or maximum january should be covered near 73.85 to 73.95," said Bhansali - Head Treasury, Finrex Treasury Advisors.