The rupee surrendered all intra-day gains to provisionally close on a flat note at 75.58 against the US dollar on Friday as investors looked for cues to move forward and take positions.
Forex traders said positive domestic equities, sustained foreign fund flows, revival of business activities and weak US dollar supported the local unit, but there were still a slew of risks, including US-China trade tiff, that weighed on the currency.
At the interbank forex market, the rupee opened strong at 75.38, but later pared gains and finally settled at 75.58 against the US dollar, down 1 paisa over its last close of 75.57.
“The USD/INR spot has been trading in a very tight range 75-75.65 as investors await catalyst to move forward and take positions,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
Currently, the spot is in indecisive market and going forward the focus will be on Jio-Mubadala deal related dollar flows, US-China trade spat and whether there is a second wave of infection.
The expectations of more stimulus measures from the US government drove the optimism in the market, however, Trump administration postponed the meeting to next week crashing investors’ hopes, he said.
Technically, 75 is a crucial support and break off which can take spot towards 74.50 or bounce from there can take prices towards 76.50,” he added.