By Swati Mishra
The rupee opened on a flat note and inched 4 paise higher to 73.27 against the US Dollar on Thursday Previously it was close at 73.27. At the Interbank Forex Market, the rupee was trending in a narrow range. It lowers its value and opened at 73.39 against the American currency, and hiked point 12 in comparison to the previous closing range.
On Wednesday, the rupee was closed at 73.31 against the US dollar that was up four paise.
“Rising number of COVID-19 cases is inviting worries among market about a new wave of lockdown in Europe and hopes and expectation of recovery for the market from the international spending are fading, especially from the US. This could confine appreciation bias for the local unit,” Reliance Securities said in a research note.
Analysts expect weaker-than-expected economic data on the domestic front to keep the Indian rupee weighed down against the US dollar.
“For the day, we are hoping USDINR to quote in the range of 73.05 to 73.50,” Motilal Oswal said in a note.
On Monday, the rupee snapped its three-session winning run, slipping 12 points to close at 73.28 against the dollar amid weakening Asian competitors. Starting off on a bullish note, the Indian currently touched the day’s high of 73.06 before losing pace. It swung 25 paise during the session.
The analyst note further added that “RBI mopping up flows by purchasing dollars in anticipation of fund and portfolio flows could also keep the appreciation bias confine for the local/domestic unit.
Data showed inflation rose to 7.34 per cent in September from a year ago as food prices hiked ahead of the festival season. Higher inflation has brought down the expectation of further rate cut by the RBI. It is also added that the perishable items such as fish, eggs, and vegetables have continued to surge the inflation.
“On the domestic equity market front, the 30-share BSE (Bombay Stock Exchange) benchmark Sensex was trending 150.05 points lower at 40,644.69, and the broader NSE (National Stock Exchange) fell 42.80 points to 11,928.25.”
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