For the next couple of sessions, we expect the USD-INR to quote in a wide range of 71.20 and 71.80 (Spot), says Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services Private.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.05 per cent to 98.34.
Rupee on Tuesday dived 31 paise to end at a nearly one-month low against the US currency due to heavy dollar buying amid fresh concerns over the progress of China-US trade talks.
Trade talks progressing smoothly, continuous inflows in the Indian equity markets and easing monetary policy by the US FED can possibly lead to appreciation of Indian rupee.
Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 42 points gain or 0.37 percent.
The rupee closed at 71.54 to the dollar, down by 31 paise or 0.44 per cent -- the biggest one day loss in this month.
ICICIdirect expect the USD-INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions
At the interbank foreign exchange market, the rupee opened higher at 70.83 and touched an intra-day high of 70.74 against the American currency.
The rupee ended higher by 5 paise at 71.02 against the US dollar on Friday.
In an upcoming week, traders can expect the subdued movement to continue as daily chart is trading at flat short term and medium term moving averages.
The domestic unit finally settled at 71.02, higher by 5 paise over the previous closing price. On Thursday the rupee had settled at 71.07 against the American currency.
The dollar slid to two-week lows on Thursday, with safe-haven demand for the currency waning.
According to Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services Private Ltd, the rupee consolidated in a narrow range for the first half of the session but was weighed down following sell-off in domestic equities.
On Wednesday, the rupee pared most of its initial losses and settled the day marginally down by 5 paise.
At the interbank foreign exchange market, the rupee opened strong at 71.20 against the US dollar. During the day, the domestic unit fluctuated between a high of 70.94 and a low of 71.22.
The forex market was shut on October 8 on account of Dussehra.
Forex traders said market sentiment remained fragile ahead of the US-China trade meeting.
The rupee on Friday closed almost flat at 70.88 against the US dollar after the Reserve Bank of India in a widely expected move cut key interest rates by 0.25 percentage point.
Before moving forward, we believe that traders must look into current behaviour of medium term and short term exponential moving averages which are trading absolutely flat at this juncture
Sterling lost the ground as EU rejected the latest British proposals for a revised Northern Ireland/Ireland border deal
The Reserve Bank on Friday cut its benchmark lending rate by 0.25 percentage point to revive economic growth and affirmed commitment to remain accommodative to address growth concerns 'as long as necessary'.
ICICIdirect expects the USD-INR to find support at lower levels. Utilise downsides in the pair to initiate long positions.
At the interbank foreign exchange market, the rupee opened weaker at 71.22 a dollar. It fell further to the day's low of 71.35, before recouping losses to touch a high of 70.86.
The currency market was shut on Wednesday on back of Gandhi Jayanti.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.11 per cent to 99.48.