Rupee - Feb 4, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended flat against the U.S. currency on Thursday ahead of the MPC decision tomorrow.

However, possible intervention from RBI offset the impact of foreign equity inflows.

The Rupee ended at 72.95 compared with 72.96 in the previous session.

The Monetary Policy Committee (MPC) is likely to keep a status quo on rates tomorrow but is widely expected to communicate its stance on liquidity management.

Meanwhile, Asian currencies were weak this Thursday, while the U.S. Dollar strengthened this Thursday afternoon session in Asia and also kept the appreciation bias limited for the local unit.

The one-year forward premium was at 3.62 rupees against 3.63 rupees in the previous session.

Technically, the USDINR Spot pair traded in a narrow range and remained below the 73.00 level. However, on the downside the pair still holds a strong support at 72.80 level indicating a sideways momentum to continue within range of 72.80-73.00 levels in coming sessions.

Source : Equity Bulls

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