(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated against the U.S. Dollar on Monday as persistent rise in local coronavirus cases increased fears of a delay in economic recovery.
The Rupee ended at 75.06 compared with 74.74 in the previous session.
Earlier in the session, the rupee weakened to 75.14, the lowest level since August 2020.
Meanwhile, the likelihood of higher retail inflation also weighed on market sentiments.
Investors will await the release of the retail inflation print for March, after market hours today.
The one-year forward premium was at 3.52 rupees, against 3.46 rupees in the previous session.
Indian money markets will be closed tomorrow and on Wednesday for local holidays.
Technically, the USDINR Spot pair had given a breakout above 75.00 levels with increase in volume activity indicating a strong uptrend to continue up to 75.35-75.70 levels. Support is at 75.05-74.77 levels. The USDINR Spot pair could trade in a range of 74.90-75.40 levels in coming session.
The Dollar was flat this Monday afternoon trade in Asia as investors await the crucial U.S. inflation and retail sales data in the week.
Technically, the Dollar Index is trading near $92.10 level indicating a sideways momentum within the range $91.80-$92.25 levels for the rest of the session.
The Euro, the Sterling and the safe haven Yen strengthened against the dollar this Monday afternoon trade in Asia.