Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee appreciated on Monday extending gains from Friday against the Greenback tracking strong local equities and on bets that the second Covid-19 wave in the country may have peaked.
The Rupee ended at 73.21 against 73.29 in the previous session.
Meanwhile, regional currencies were mostly weaker against the U.S. Dollar and capped gains.
Meanwhile, India's wholesale inflation rate quickened by 10.49% on year in April government data showed. The print outpaced a median forecast of 9.05% annual expansion.
The one-year forward premium was at 3.84 rupees, against 3.82 rupees in the previous session.
Technically, the USDINR spot pair traded in a small range of 73.27-73.15. However, the pair ended below the 100-Daily Moving Average at 73.30 levels indicating the Bearish trend to continue up to 73.08-72.90 levels. Resistance is at 73.33-73.48 levels.
The U.S. Dollar edged lower on Monday afternoon trade in Asia; however, downside was capped as new COVID-19 restrictions in Asia pushed investors to safe haven appeal of the greenback.
Technically, the Dollar Index could trade on a negative note below $90.50 levels up to the support of $89.98-$89.69.
Fed minutes are due on Wednesday and are the next market focus for clues on the central bank's thinking.
The Euro, the Pound Sterling and the Japanese Yen rose marginally on Monday afternoon trade in Asia.