Rupee - Oct 28, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated against the Dollar as risk appetite waned following another wave of coronavirus infections in the U.S. and Europe.

German newspaper Bild reported that Chancellor Angela Merkel wants to close all restaurants and bars and some other venues from Nov. 4 in a bid to curb new infections.

Reports that France is mulling a national lockdown also weighed on sentiments.

Greenback purchases by state-run banks, likely on behalf of importers also weighed on the local unit.

Uncertainty over the outcome of the U.S. Presidential election and U.S. stimulus impasse also weighed on the domestic unit this intraday session.

The Rupee ended at 73.88 this Wednesday compared with 73.71 in the previous session.

The Rupee had appreciated to intraday high of 73.65 earlier in the session likely for equity-related inflows.

The one-year forward premium was at 2.97 rupees against 2.98 rupees in the previous session.

USDINR Spot opened on a flat note at 73.67 and made a high of 73.93, low of 73.62 and closed at 73.88.

Technically, USDINR Spot has bounced back from 73.65 levels support and traded above 50-DMA, however, 74.00 levels still holds a resistance.

Support holds at 73.70-73.55 & Resistance is at 73.97-74.10 levels.

USDINR Spot is expected to trade in a range of 72.60-73.97 levels

USDINR October futures on NSE is trading up by Rs.0.17 paisa at Rs.74.045 this Wednesday.

Source : Equity Bulls

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