Rupee - April 9, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated on Friday and started of the new fiscal year on a weak note against the dollar on the back of inflationary pressures and importer covering.

The Rupee ended at 74.74 compared with 74.59 in the previous session. The local unit had earlier fallen to 74.95, the lowest since August 21. For the week, the local unit fell 2.2%, its biggest weekly fall since Aug. 30, 2013.

Foreign banks were also covering their dollar short positions, given the uneasiness stemming from a surge in Covid cases in the country and weighed on the domestic unit.

The one-year forward premium was at 3.46 rupees, against 3.43 rupees in the previous session.

Technically, the USDINR Spot pair had a positive session where it bounced back from 74.53 levels and reached to 74.98 levels indicating a strong bullish trend with good volume activity. Support is at 74.60-74.35 levels Resistance is at 75.00-75.28 levels.

The USDINR Spot pair could trade in a range of 74.60-75.10 levels in coming session.

In the international markets, the Dollar recovered slightly on Friday afternoon trade.

Technically, the Dollar Index is trading below $92.50 level indicating for sideways momentum within the range $92.10-$92.65 levels.

Source : Equity Bulls

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