Rupee - Feb 24, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar supported by persistent greenback sales by foreign banks and weaker dollar.

The Rupee ended at 72.32 compared with 72.46 in the previous session. The Rupee had strengthened to an intra-day high of 72.27 earlier in the session, but had slipped to the day's low of 72.41 probably on the back of likely intervention from RBI.

RBI Governor Shaktikanta Das said in an interview to news channel CNBC-TV18 today that the central bank's main objective in exchange rate management is to control the volatility on the rupee and that it will continue to maintain the overall stability of the local unit.

Additionally, dollar inflows have also been supportive of the rupee.

The one-year forward premium was at 3.84 rupees, unchanged against the previous session.

The Dollar Index remained weak this Wednesday afternoon trade in Asia also lent support to the local unit.

Technically, the USDINR Spot pair holds a support near 72.25-72.30 levels and below which could see a Bearish momentum up to 72.10-71.95 levels. However a bounce back from 72.30 could take the pair up to 72.45-72.60 levels.