Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee appreciated against the U.S. Dollar this Tuesday for the third straight session supported by an upbeat risk appetite in the region and strong local equities.
However, again RBI's presence capped large gains in the local unit.
The Rupee ended at 74.01 to the dollar compared with 74.10 in the previous session. The currency had appreciated to 73.88 earlier in the session.
The benchmark BSE Sensex ended at a record high to close 1% higher, while, foreign portfolio inflows have totalled more than $7 billion into local equities.
Strong Asian currencies on the back weak U.S. Dollar also lent support. The dollar index was down 0.33% at 92.22, this Tuesday afternoon trade.
Markets will closely watch out for the US CB Consumer Confidence data due for release later in the session.
The one-year forward premium was at 3.19 rupees against 3.14 in the previous session.
Technically, USDINR Spot holds a resistance of 100-Daily Moving Average which is placed at 74.12 levels and is sustaining below that level indicating sideways momentum to continue where it holds a support near 73.90-73.78 levels. Resistance is at 74.12-73.25 levels.
USDINR Spot is expected to trade in a range of 73.78-74.10 levels.
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