(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated on Friday and posted its worst month against the U.S. currency in 11 months as a surge in bond yields in the United States prompted fears of higher outflows from the country's equities and debt.
The Rupee ended at 73.47 to the dollar this Friday compared with 72.42 in the previous session. The currency fell by 1.5% this Friday, its worst day since Mar. 23, 2020.
Apart from U.S. bond yields, rebound in the dollar index to 90.60 levels also weighed on sentiments this Friday.
Meanwhile, India's fiscal deficit in the first 10 months of the current financial year that started Apr. 1 totalled 12.34 trillion rupees, widening from 9.85 trillion rupees in the comparable year-earlier period, government data. The deficit was 128.5% of budget aim in the same period last year.
Traders now await the domestic growth data for the October-December quarter, to be released post market hours today, to gauge the impact of recovery.
The one-year forward premium was at 3.58 rupees against 3.67 rupees in the previous session.
Technically, the USDINR Spot pair on the weekly chart has bounced back 100-Weeks Moving Average which is placed at 72.55 levels which will hold a positional support in the counter.
The pair has given a sharp breakout above 73.00 levels indicating further upside towards 73.60-73.85 levels. Support is at 73.25-73.05 levels.