Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee appreciated for the first time in seven sessions against the U.S. dollar as talks of RBI's intervention in the spot markets outweighed fears over the economic shock of rising covid-19 infections.
The Rupee ended at 74.92 compared with 75.06 in the previous session. The currency had earlier weakened to 75.32.
The one-year forward premium was at 3.51 rupees, against 3.52 rupees in the previous session.
Technically, the USDINR Spot pair found resistance near 75.35-75.50 levels from where the pair settled below 75.00 levels and now could see a downside move up to 74.85-74.70 levels. The USDINR Spot pair could trade in a range of 74.80-75.20 levels.
The Indian benchmark government bond yields rose on Thursday to 6.13%, against 6.01% at the previous close despite the central bank buying notes under its so-called government securities acquisition programme.
Meanwhile, some support also came in the form of falling Greenback. The U.S. dollar fell to a 4-week low against other major currencies on Thursday afternoon trade as Treasury yields eased from last month's surge as investors expect the Fed to remain dovish through the year despite a rise in inflation.
Technically, the Dollar Index is trading near $91.55 level which is near to 50-Daily Moving Average indicating a sideways momentum within the range $91.30-$91.90 levels.
The Euro and the Sterling were stronger against the U.S Dollar this Thursday afternoon trade.
Thursday is busy with U.S. data, including retail sales readings for March and weekly jobless figures due tonight.