Indian rupee ends lower at $73.27

15 June, 2021 12:00 AM printer

NEW DELHI: Indian rupee ended 20 paise lower at 73.27 per dollar, amid volatile trade saw in the domestic equity market.

It opened 14 paise lower at 73.21 per dollar against previous close of 73.07 and traded in the range of 73.10-73.28, report agencies.

At close, the Sensex was up 76.77 points or 0.15% at 52551.53, and the Nifty was up 12.50 points or 0.08% at 15811.90.

“The focus now turns on the big final event, the Fed’s meeting next week, although there may not be much of a shift in rhetoric. If Fed hints that tapering discussion may be closer than before, a knee-jerk spurt may be witnessed in USDINR spot, but Fed won’t rush into tightening the stimulus, so overall the dollar will remain soft,” said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.

“The USDINR spot is hovering around 73 zone, and fears of rising international crude oil prices is leading to importers demand.”

“In spot, the immediate resistance lies around 73.20-73.30, only a consistent trading above that can push prices towards 73.60-73.75 zone while 72.70-72.50 will act as a crucial support, Gupta added.

Oil prices held near multi-year highs on Monday, underpinned by an improved outlook for demand as increased COVID-19 vaccinations help lift travel curbs.

The U.S. dollar held steady against major currencies on Monday, after posting its biggest weekly gain in more than a month, as traders closed short positions ahead of a Federal Reserve policy meeting this week.

Gold prices slipped on Monday to their lowest in more than a week, weighed down by a stronger dollar, while investors awaited cues from the Federal Reserve policy meeting this week with recent spikes in U.S. consumer prices seen as a temporary blip.

With the dollar index hovering near support of 89-90 levels ahead of US Fed monetary policy, the USDINR has ended above its Call base of 73 levels. Hence, we expect a move towards 73.50 in coming days, said ICICI Direct.

The dollar-rupee June contract on the NSE was at Rs 73.20 in the last session. The open interest remained almost unchanged for the June series, it added.