The Indian rupee continued to depreciate on Wednesday amid a strengthening dollar across currencies globally.
The rupee ended at 74.32 per dollar on Wednesday, weakening by 9 paise from its previous close.
Rahul Gupta, Head of Research (Currency), Emkay Global Financial Services, said: “The rupee is on an edge, for which the greater sensitivity probably lies towards stronger US data and a stronger dollar.”
He noted that that the foreign exchange market is focusing on a “potentially hot” US labor report and the degree to which the new Covid-19 variant reduces recovery expectations.
“So until the USD-INR spot trades above 73.75-73.80, it will remain afloat with immediate resistance around 74.50 and then to the 74.75 zones. The major supports lie around 73.75-73.50-73.45,” Gupta said.
Along with the strengthening dollar, a persistent rise in crude oil prices has also impacted the Indian currency.
The August contract of Brent crude oil in the intercontinental exchange is currently at $75.19, higher by 0.58% from its previous close.
Meanwhile, the Indian equity market ended on a subdued note after a positive start. The BSE Sensex closed at 52,482.71, lower by 66.95 points or 0.13% from its previous close.
