Rupee - Dec 8, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. currency on the back of surging dollar inflows into local equities.

However, possible central bank intervention to mop up dollar inflows trimmed gains on the local unit.

Foreign investors have pumped in almost $2 billion month-to-date in equities, after bringing in about $9 billion in November.

The Rupee ended at 73.52 to the dollar compared with 73.90 in the previous session.

Asian currencies were mixed, but Chinese Yuan extended gains this Tuesday and lent support.

The one-year forward premium was at 3.22 rupees against 3.21 rupees in the previous session.

Technically, the USDINR Spot pair gave a sharp fall from 50-Daily Moving Average at 73.85 levels and below the level could continue to trade downside support at 73.30-73.15 levels.

Resistance is at 73.75 but above the level will resume upside momentum up to 73.88-74.00 levels.

USDINR Spot is expected to trade in a range of 73.30-73.75 levels for the coming few sessions.

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Source : Equity Bulls

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