Rupee - May 10, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar on Monday tracking the weaker dollar as weaker-than-expected U.S. jobs data elevated hopes that the Federal Reserve could maintain its current level of bond purchases for an extended period of time.

The Rupee ended at 73.35, compared with 73.51 in the previous session. The Rupee traded in the range from to 73.34 to 73.48.

Other Asian currencies were also helped by weak U.S. jobs data, and lent support to the domestic currency.

The one-year forward premium was at 3.75 rupees versus 3.68 rupees at previous close.

Technically, the USDINR Spot pair is trading below 100-Daily Moving Average which is placed at 73.33 level indicating a Bearish momentum up to 73.15-72.95 levels. Resistance is at 73.45-73.65 levels. The USDINR Spot pair could trade in a range of 73.10-73.45 levels in the coming session.

The U.S. Dollar still remained under pressure on Monday afternoon trade in Asia as a weak U.S. employment report prompted investors to exit their long positions in the greenback.

However, the dollar's losses were capped as the U.S. Treasury yields were higher on Monday afternoon trade in Asia.

Technically, the Dollar Index has given a breakdown below its multiple support zone at $90.42 level indicating a further downside momentum up to $90.08-$89.85 levels.

Source : Equity Bulls

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