Rupee - April 22, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar, as an alarming surge in coronavirus infections raised risks to the country's near-term growth outlook and increased concerns about foreign fund outflows.

However, likely intervention from the Reserve Bank of India, trimmed losses in the unit and kept volatility in check.

The Rupee ended at 74.95 compared with 74.88 in the previous session.

Meanwhile, regional currencies were stronger, following a weak dollar.

The one-year forward premium was at 3.51 rupees, against 3.50 rupees in the previous session.

Technically, the USDINR Spot pair did not manage to sustain above 75.50 levels and corrected below 75.00 level indicating a sideways momentum to continue within the supports and resistances. Supports are at 74.80 and 74.65. Resistances are at 75.20 and 75.45.

The Dollar Index remained marginally weak this Thursday afternoon tracking the fading gains in U.S. Treasury trade ahead of the weekly U.S. jobless claims data and ECB meeting this Thursday evening.

Any positive comments about the economic outlook or hints of tapering bond purchases are expected to send the Euro higher.

Technically, the Dollar Index is trading well below to 50-Daily Moving Average at $91.63 indicating a sideways momentum to bearish to continue in the counter in the short term. However, a break above $91.25 will push the Index to $91.50.

Source : Equity Bulls

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