Rupee - April 5, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the Dollar on Monday amid concerns that rising Covid-19 cases and subsequent lockdowns in some states may hurt economic recovery and cause foreign outflows.

The Rupee ended at 73.29 to the dollar compared with 73.11 in the previous session.

Meanwhile, India's Monetary Policy Committee, which will conclude on Wednesday, is widely expected to keep the key repo rate unchanged at a record low of 4%.

The one-year forward premium was at 3.59 rupees, against 3.71 rupees in the previous session.

Technically, USDINR Spot pair traded on flat note and did not manage to cross above 73.50 levels but at the same time is sustaining above 73.25 indicating a sideways momentum to continue where support is at 73.20-73.05 levels. Resistance is at 73.50-73.68 levels.

The USDINR Spot pair could trade in a range of 73.20-73.60 levels in coming session.

The Dollar was largely steady on Monday afternoon, while U.S. Treasury yields rose on Monday afternoon.

Markets will look to cues from ISM Non-Manufacturing PMI data from the U.S. tonight.

Technically, the Dollar Index will hold a support of $92.66-92.45 levels above which will continue its bullish momentum up to $93.25-$93.60 levels.

Source : Equity Bulls

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