Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated against the U.S. Dollar on Monday tracking the strength of the Greenback as investors flee to the safety of the dollar amid rise in Covid cases and weak risk appetitive.
Most Asian and other riskier currencies were weak against the U.S. Dollar on Monday afternoon trade as investors expressed renewed skepticism over the potential for a strong economic rebound from the pandemic.
The Rupee ended at 74.87 this Monday compared with 74.56 in the previous session.
Technically, the USDINR Spot pair could see a positive momentum above 74.80 levels up to 75.00-75.20 levels. Support is at 74.75-74.55 levels. The USDINR Spot could trade in a range of 74.70-75.10 levels.
The Dollar rose this Monday afternoon trade in Asia maintaining its recent strong tone as rising Covid-19 cases threaten to derail the global economic recovery, prompting a flight to safety.
Technically, the Dollar Index is trading on a positive note and a breakout above $92.85 level could push the Index to $93.00-$93.33 levels. Support is at $92.60-$92.50 levels.
The majority of the new cases had been seen in Southeast Asia, but infections are now also rising in the U.S. and Europe, even as England lifts most of its social restrictions.
Meanwhile, investors this week will be interested in the Thursday's policy meeting of the European Central Bank, especially after last week's release of the central bank's strategic review.
Elsewhere, investors will also look to cues from the Tuesday's meeting of China's central bank, at which there is a chance the benchmark loan prime rate could be lowered to help support its stumbling economic recovery.