The Indian rupee opened higher on Monday morning, gaining 18 paise to 73.33 against the US dollar (19.98 versus the UAE dirham), and is supported by positive domestic equities.
The rupee fell below 20 against the UAE dirham on Friday and has been staying below this level since then. (Check out the latest gold/forex rates in UAE)
Simon Ballard, the chief economist at First Abu Dhabi Bank, said as Covid-19 cases appear to gradually slow down, the stock market is looking at the positive side of things especially with the backdrop of a weaker US dollar.
“In terms of levels, 73.50 should act as a strong support, and on the top 75.00 and 76.00 would act as the next resistance levels,” said Ballard.
At the interbank forex market, the rupee opened at 73.34 then inched higher to 73.33, rising 18 paise over its previous close last Friday. It hit a low of 73.41 in early trade.
Reliance Securities said the rupee started on a stronger note against the dollar supported by improved risk appetite in the global and regional markets and a weaker dollar.
But it warned that rising Covid-19 cases could cap the rupee’s gains.
On Monday, India recorded a single-day rise of 366,161 Covid-19 cases, taking the overall tally to 22,662,575.
On the domestic equity market front, the 30-stock BSE Sensex was trading 286.91 points or 0.58 per cent higher at 49,493.38, while the broader 50-stock NSE Nifty rose 100.10 points or 0.68 per cent to 14,923.25.