Rupee Loses Ground After Opening Flat

Rupee in trade on Monday opened flat with against previous closing of 71.92 and further was dragged lower to 72.05. Last the rupee was seen quoting down at 72.0088.

The domestic currency on a more recent basis gained from 74 to 72 mark on the back of increased foreign fund flow, crude oil price softening and hence reduced concerns around fiscal deficit and inflation.

Further, however the trend is against the projection of rupee reaching a higher mark by the calendar year end. Since the beginning of the year, rupee has lost a substantial 11% in value and any upside in the dollar against a basket of six major currencies may again put pressure on the rupee.

As per brokerage firm, ICICI Direct, currency traders can take a long call when downsides in the USD-INR pair are reached.

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