Rupee - April 19, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the dollar this Monday as a constant surge in coronavirus infections in the country increased fears of complete localized lockdown in the affected areas and a postpone in economic recovery and also prompt FPI outflows.

The Rupee ended at 74.88 compared with 74.35 in the previous session. The Rupee weakened by 0.7% this Monday, its biggest one-day fall since Apr. 7.

Meanwhile, Asian equities were stronger this Monday tracking firm equity markets supported by buoyant growth prospects.

The one-year forward premium was at 3.50 rupees, against 3.55 rupees in the previous session.

Technically, the USDINR spot pair bounced back from an important support at 74.40 and now could witness a push towards 75.20 levels. A break above 75.20 will push the pair to 75.50 very quickly.

The Dollar Index was down 0.45% this Monday afternoon trade weighed down by a dovish stance by the U.S. Federal Reserve and improved risk sentiment amid a rally in global stocks.

Technically, the Dollar Index found resistance at $91.50 and now could move lower towards $90.95. A break below $90.95 will pull the index to $90.50 very quickly.

Source : Equity Bulls

Keywords