Rupee - Nov 17, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S Dollar for a 2nd consecutive session amid improved risk appetite in the region supported by news of another potentially effective coronavirus vaccine.

However greenback purchases from PSU banks, likely on behalf of the central bank, along with importers' dollar demand, offset gains.

The Rupee ended at 74.46 against the dollar compared with 74.60 close on Friday. The currency had risen to an intraday high of 74.39, but fell to the day's low of 74.63 on persistent dollar buying by state-run banks.

Asian currencies appreciated this Tuesday supported by the vaccine news and weak U.S. Dollar Index also lent support.

The one-year forward premium rose to a six-week high of 3.11 rupees today compared to 3.06 rupees on Friday.

Technically, USDINR Spot pair retreated from 200-DMA which is placed at 74.57 levels and below which could see downside pressure in coming sessions.

Resistance is at 74.65-74.78 & Support is at 74.30-74.10 levels.

USDINR Spot is expected to trade in a range of 74.20-74.70 levels.

Source : Equity Bulls

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