USDINR futures on the Friday ended flat from the previous closing price of Thursday. It hit a high of 75.11 on the intraday basis. Expert Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said that the problems for Indian Rupee are far from over and may continue to trade weekly on the positional term basis. He said the current weakness could be attributed many factors, most important among them is the resurgence of the coronavirus cases.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

See Zee Business Live TV Streaming Below:

 

With restrictions and night curfews in place, the overall economy could see some setbacks.

In its commentary, Motilal Oswal said that the Rupee continues to be weighed down against the US Dollar as it fell for the third successive session on Thursday. Yesterday’s weakness in the currency was a continuation of fall after the RBI held a dovish stance, it said.

Gupta said that the rupee hit at its six-month low Thursday in comparison to the USD. This will have an impact on the imports like Gold, Silver and Crude oil. 

USDINR April Futures 

The USDINR April Futures on NSE today ended at 74.81, ending almost flat from the last closing price on Thursday. It hit an intraday high of 75.11. The VP recommends a Buy on USDINR April Futures at 74.50. He puts the stop loss at 74 while the target price at 75.50. 

The weakening INR will have a negative impact on the exchange rate leading to a costlier gold and oil, Gupta said. While the oil prices have been stable because of lower global demand for crude oil, a higher exchange rate will mean that the import bills remain stretched. That may ultimately impact the price of petrol and diesel, he further said.  

As for Gold and Silver, Gold has hit USD 1750 at the time of filing this story. This is showing strength in bullion after it hit a low of USD 1676. A stronger dollar could further escalate the price of bullion for domestic consumers.  

How other currencies traded today: 

EURINR (April) – EURINR ended at 89.07 on Friday, up by 0.47 per cent from the previous closing price of 88.65. It attained a high of 89.40 on the intraday basis. 

GBPINR (April) – GBPINR ended at 102.47 on Friday, down by 0.17 per cent from the previous closing price of 102.64. It attained a high of 102.75 on the intraday basis.   

JPYINR (April) – JPYINR ended at 68.45 on Friday, up by 0.23 per cent from the previous closing price of 68.29. It attained a high of 68.48 on the intraday basis.