Rupee - May 21, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated on Friday aided by a weak dollar index and dollar inflows.

For the week, the unit rose 0.6%, adding to aggregate gains of 2.3% in the last three weeks.

The Rupee ended at 72.83, its highest level in nearly two months, compared with 73.10 in the previous session.

Asian currencies were broadly higher on Friday and gained this week and lent support.

The one-year forward premium was at 3.85 rupees, unchanged against the previous session.

Technically, the USDINR Spot pair has given a sharp correction from 73.10 levels broken below the important support level at 72.88 indicating a further downside momentum to continue up to 72.70-72.47 levels. Resistance is at 72.90-73.10 levels.

The Dollar continued to struggle on Friday afternoon trade in Asia as concerns about taper talk in Federal Reserve minutes faded.

Technically, the Dollar Index could find support near multiple support zones ay $89.68-$89.50 levels. However, a trade below could see a correction up to $89.23-$89.05 levels.

Source : Equity Bulls

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