Rupee - July 2, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated on Friday and for the 5th straight week against the U.S. Dollar, tracking as the dollar continued to strengthen amid increasing bets of an early tapering from the Federal Reserve.

The Rupee ended at 74.74 on Friday compared with 74.56 in the previous session. Earlier in the day, the local unit had weakened to 74.87, the lowest since Apr. 26, on foreign banks' dollar purchases.

For the week, the rupee depreciated by 0.7%, adding to an aggregate fall of 2.4% in the last four weeks.

Meanwhile, the currency also weakened on the back of strong oil prices.

Technically, the USDINR Spot pair has given a breakout above 74.40 levels where it will continue its bullish momentum up to 75.55-76.20 levels. Support is at 74.25-74.00 levels. The USDINR Spot pair could trade in a range of 74.25-75.30 levels in coming week.

The U.S. dollar hit a fresh three-month high versus other major currencies on Friday afternoon trade, as traders are expecting a strong U.S. labour data.

Today's monthly jobs report may prove critical in assessing the timeline of the Fed's bond taper.

A poll suggests that investors are expecting a gain of 700,000 jobs in June, compared with 559,000 in May, and an unemployment rate of 5.7% versus 5.8% in the previous month.

Technically, the Dollar Index has given a breakout of rounding bottom where above $92.20 could see upside rally up to $93.10-$94.00 levels.

Source : Equity Bulls

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