Rupee - Jan 21, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the dollar this Thursday amid improved risk sentiment in the region supported by hopes that the new U.S. President's policies would accelerate economic recovery.

However, rumours of dollar purchases likely on behalf of the central bank, capped gains.

The Rupee ended 72.99 compared with 73.03 in the previous session.

Most of the Asian currencies were stronger against the U.S. Dollar this Thursday and lent support.

The dollar slipped against its major peers and was 0.29% lower at 90.21 ahead of the ECB meet today evening.

The central bank is widely expected to be open to further stimulus measures.

The U.S. Federal Reserve policy makers hold their inaugural meeting of 2021 next week.

The one-year forward premium was at 3.49 rupees, against 3.47 rupees in the previous session.

Technically, the USDINR Spot pair has bounced back from its multiple support zone at 72.80-72.90 above which could see further upside up to 73.10-73.25 levels.

However, sideways to marginal downside momentum will continue below 73.00 levels up to 72.85-72.70 levels.

Source : Equity Bulls

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