Rupee - June 1, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar this Wednesday tracking the weak domestic equity and strong dollar.

Indian Rupee ended lower at 73.08 per dollar. It opened 18 paisa lower at 73.08 per dollar against Tuesday's close of 72.90 and traded in the range of 73.04-73.31.

Meanwhile, stronger oil prices have also weighed on sentiments as Saudi Arabian officials said that they are satisfied with rising demand. So, the possibility of further strengthening of oil has also hurt sentiments.

Investors have turned cautious on the Indian economy however the stance has added to speculations that the Reserve Bank of India (RBI) will take measures to infuse liquidity in the markets while keeping the benchmark rates unchanged.

However, slightly better data capped the weakness. India's exports touched $32 billion in May 2021 over 67% higher than May last year and almost 8% more than in May 2019.

Markets could now look to cues from the monetary policy meeting and nonfarm payrolls number from the U.S. on Friday.

Technically, the USDINR Spot pair could remain within 73.30-72.90. However, a sustained above 73.30 will push the pair to 73.50. at the same time, a sustained trade below 72.90 will pull the pair back to 72.50.

The U.S. Dollar has been gaining ground following upbeat US data and despite dovish Fed comments.

The Dollar Index has rebound above $90.00 indicating a bullish reversal up $90.55-$90.75 levels. Support is at $90.05-$89.88 levels.

Source : Equity Bulls

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