Rupee - May 12, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar on Wednesday tracking the strength of the greenback ahead of the U.S. inflation number tonight.

The Rupee ended at 73.42 per dollar compared with 73.34 in the previous session.

The Rupee, along with other Asian currencies came under pressure today on worries that growing inflationary pressure in the U.S. may prompt the Federal Reserve to scale back stimulus.

The benchmark BSE Sensex, tracking regional peers, ended 1% lower, and also weighed on the domestic unit this Wednesday.

Markets will also look to cues from India's retail inflation and IIP number, due after market hours.

The one-year forward premium was at 3.82 rupees versus 3.83 rupees at previous close.

Indian financial markets are closed tomorrow for Eid.

Technically, the USDINR Spot pair traded in a small range where 73.50-73.65 holds a resistance and 73.35-73.20 holds a support.

The U.S. Dollar remained steady on Wednesday afternoon trade in Asia ahead of U.S. CPI data expected tonight.

Technically, the Dollar Index could continue its sideways to Bearish trend below $90.40 levels where it holds a strong support at $90.05-$89.92 levels.

Source : Equity Bulls

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