Rupee - March 9, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar, supported by strong local equities and the dollar index retreating from over three-month highs.

The Dollar backed away from 3-1/2-month highs on Tuesday as U.S. Treasury yields stabilised.

The Rupee ended at 72.92 compared with 73.25 in the previous session.

Global fiscal policies as well as hopes of a swift economic rebound have improved risk appetite and continued to lend support to the local unit.

Markets will now look ahead to the U.S. consumer price index data is due tomorrow and the producer price index print is scheduled for release on Friday.

Additionally, CPI and IIP number this week back home will also be keenly awaited.

The one-year forward premium was at 3.58 rupees against 3.61 rupees in the previous session.

Most of the non-dollar currencies like the euro and sterling gained this Tuesday as both currencies benefiting as the dollar took a breather.

Technically, the USDINR spot pair has given a sharp correction from 73.25 levels but has settled above 72.80 which is the 21-DMA support indicating the pair could consolidate within the range of 72.75-73.25 levels.

Source : Equity Bulls

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