Rupee - Oct 13, 2020 - Mr. Sriram Iyer, Senior Research Analyst - Reliance Securities

The Indian Rupee depreciated marginally for the second straight session against the dollar, tracking a broad-based decline in regional currencies and higher-than-expected domestic inflation print.

The Rupee ended at 73.36 to the dollar this Tuesday compared with 73.27 in the previous session.

Risk appetite waned as the uncertainty surrounding the covid-19 vaccine and a fiscal stimulus stalemate in the U.S.

Meanwhile, Asian currencies were trading mostly weaker against the U.S. Dollar Index and weighed on domestic sentiments.

However, foreign and portfolio flows into the domestic markets capped losses of the domestic unit.

Looking ahead markets could remain range bound till the outcome of the U.S. elections.

We expect persistent dollar-buying by the RBI to mop up foreign and portfolio flows, so appreciation bias for the currency could be limited.

The one-year forward premium was at 3.01 rupees, against 3.02 rupees in the previous session.

Technically, USDINR Spot opened on a flat note at 73.32 levels and made a high of 73.43, low of 73.26 and gave a close at 73.36 levels.

USDINR Spot holds a resistance near 21-Daily Moving Average which is placed at 73.45 levels below which will continue Bearish move down up to 73.15-73.00 levels.

USDINR Spot is expected to trade in a range of 73.00-73.45 levels.

USDINR October futures on NSE is trading flat at Rs.73.4050, unchanged from last session.

Source : Equity Bulls

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