The rupee broke its three-day losing streak and gained 10 paise against the US dollar on Thursday, September 9, to settle at 73.50 (provisional), tracking the recovery in domestic stocks. In the interbank currency market, the domestic unit opened weakly at 73.77 against the dollar and recorded an intraday high of 73.48. It witnessed a low of 73.85. During an early trading session, the local unit fell 22 paise to 73.82 against the greenback.
The rupee closed at 73.50, up 10 paise from its previous closing price. In the previous session, the local unit traded at 73.60 against the US currency. Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, fell 0.11 percent to 92.54.
Mr. Amit Pabari, MD, CR Forex:
“The market is now waiting for today’s ECB policy announcement, where participants are fairly divided over the central bank’s call to reduce their PEPP (emergency) program. Apart from that, other issues such as the US debt ceiling, climate change, German political elections, crude oil volatility and geopolitical tensions in Afghanistan could weaken EM FX and create new demand for the USD.
So, we expect the USDINR pair to move further up towards the 74.00 breakout point in the near term and if it is breached, it could reach 74.40-50 levels. The support is lifting higher at 73.40 and then at 73.20 levels.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities Limited:
Markets witnessed another sluggish trading session leading up to a long weekend and sluggishness across global indices. Due to a lack of follow-up interest, benchmark Nifty consolidated in the range of 17250-17450 levels. On weekly charts, the market has maintained a breakout continuation formation, but on intraday charts it has formed a double top formation, indicating temporary weakness.
While the medium term trend is still positive, traders may prefer to see gains near resistance levels due to an overwrought rally. For the bulls, 17250 and 17200 would be the main support levels.”