Re marginally up, but continues under pressure

Mumbai: The rupee pared some of its initial gains to settle 6 paise higher at 74.58 against the US dollar on Monday, tracking gains in most regional currencies and possible inflows related to an upcoming IPO. At the interbank forex market, the rupee opened at 74.49, and hit an intra-day high of 74.40 and a low of 74.59. It finally finished at 74.58, higher by 6 paise over its last close. On Friday, the rupee had settled at 74.64 against the US dollar. In the last two trading sessions, the rupee has gained 13 paise against the US dollar. Meanwhile, investors will look for cues from CPI and IIP data scheduled to be released after market hours.

Moreover, US CPI and Federal Reserve Chairman Jerome Powell's testimony is also scheduled for this week. "Indian rupee remained under pressure as traders remained vigilant ahead of macroeconomic data. India CPI data is likely to show that inflation accelerated in June 2021 compared to preceding month and remained above the RBI's target range of 2-6 per cent for the second consecutive month," said Saif Mukadam, research analyst, Sharekhan by BNP Paribas.

"The Indian Rupee appreciated for the second straight session on Monday against the dollar, tracking gains in most regional currencies and possible inflows related to an upcoming IPO. Technically, the USDINR Spot pair resistances are at 74.75 and 74.90. Supports are at 74.50 and 74.35. The USDINR Spot pair could trade in a range of 74.40-74.80 levels," said Sriram Iyer, senior research analyst, Reliance Securities.

According to Jateen Trivedi, senior research analyst at LKP Securities, "rupee traded weak around 74.55 on back of dollar index strength, with overall resistance placed at 74.30-74.45 zones."