Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee appreciated against the U.S. Dollar this Monday tracking broad decline in the dollar index and rebound in equities.
The Rupee ended at 74.72 compared with 75.01 in the previous session. The rupee strengthened by 0.4% this Monday, its biggest single session rise since April 16, 2021.
Meanwhile, now investors will be keenly awaiting the U.S. Federal Reserve and Bank of Japan meetings this week.
However, there is possibility that the meetings could be a non-event for bullion as both governors could continue to signal dovish stance on the monetary policy and continue their bond purchasing program.
The one-year forward premium was at 3.55 rupees, against 3.56 rupees in the previous session.
Technically, the USDINR Spot pair has consolidated in a narrow range where it is reluctant to cross above 75.00 levels and now could retest 74.65-74.50 levels. Resistance is at 74.85-75.00 levels. The USDINR Spot pair could trade in a range of 74.60-74.90 levels in next session.
In the overseas market, the euro gave gains and was trading flat to marginally lower against the dollar on Monday afternoon session due to disappointing sentiment survey in Germany.
The British pound and safe haven Yen were stronger on Monday afternoon session adding to gains in the previous session.
In emerging markets, the onshore Yuan rose against the dollar, while most of the other Asian currencies were also stronger this Monday, tracking broad weakness of the Greenback.
Technically, the Dollar Index is trading below to 100-Daily Moving Average at $91.03 indicating a sideways to downside momentum up to $90.55. However, a trade back above the 100-DMA could push the index to $91.30 levels.