(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated against the U.S. currency as a rise in U.S. Treasury yields and the dollar index's rise to its highest level in nearly three weeks weighed on sentiments.
The Rupee ended at 73.38 compared with 73.24 in the previous session. The currency had earlier depreciated to 73.51, the weakest since Dec. 28 2020.
Meanwhile, the one-year forward premium jumped to 3.40 rupees this Monday, the highest in nearly 10 months, against 3.28 rupees on Friday. It was last at 3.35 rupees. The one-year implied yield was at 4.56%, the highest since March.
Meanwhile, the dollar index was up 0.41% at 90.46, while most Asian currencies were weak by 0.3% to 0.5% this Monday.
The BSE Sensex ended 1% higher to a fresh record high, while the Nifty ended almost up by 1% this Monday.
Technically, the USDINR Spot pair tested the 21-Daily Moving Average placed at 73.45 levels, below which could see some consolidation. However above the level could push the pair towards 73.70-73.75 levels. Support is at 73.30-73.15 levels.
The USDINR Spot pair could trade in a range of 73.30-73.75 levels in the coming session.
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