Rupee erases early gains, traces above 82 against dollar as equities remain jittery
1 min read . Updated: 02 Feb 2023, 03:25 PM IST
Premium- This week, the rupee has been under pressure and it even crossed 82 per dollar levels in the past two sessions. The local currency could not even sustain the gains that were driven by a positive budget on Wednesday.
Indian rupee erased its early gains as the equities market remained nervous over the free fall in Adani stocks after the ₹20,000 crore follow-on-public offer (FPO) was called off. The local unit gained as much as nearly 81.8 against the US dollar, however, the upside was capped. Currently, the rupee has traced back to over 82 mark.
At the time of writing, the rupee traded at 82.1800 against the US dollar on Thursday compared to the previous session's closing of 81.92 per dollar.
In the early trade at the interbank forex market, the rupee had gained to 81.7625. However, the gains were limited as Indian equities continue to witness selling pressure over bleak Adani crises.
Earlier today, Anand James - Chief Market Strategist at Geojit Financial Services said, Despite a clean break of the recent trading range, there has been a clear disinclination to make large strides on the upside. This points to potential distribution again, but we will look to follow downsides only if below 81.59, with expectations of 81.75 continuing to act as a pivot today."
This week, the rupee has been under pressure and it even crossed 82 per dollar levels in the past two sessions. The local currency could not even sustain the gains that were driven by a positive budget on Wednesday.
Amit Pabari, managing director at CR Forex said, outflows by foreign institutional investors are negative for the rupee, whereas the weakness in the dollar to a multi-month low is a positive, reported Reuters.
Pabri said, broadly the pair can be seen trading in a wide range of 81.50 to 81.90. Either side breakout will result in a 20-40 paisa move.
