Rupee - July 5, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated for the first time in 5 sessions against the U.S. Dollar tracking a broad dollar decline, as investors betted that the Federal Reserve may not rush to scale back stimulus.

The Rupee ended at 74.30 compared with 74.74 in the previous session. The local unit gained by 0.6% this Monday.

Other regional currencies were also stronger against the U.S. dollar on Monday and lent support.

On the equity side, the benchmark BSE Sensex and the broader NSE index ended higher for a second consecutive session and gained 0.75% and 0.71%, respectively on Monday and also help the local unit.

However, concerns remained on oil, which continued to remain positive on Monday afternoon trade in Asia.

The benchmark 5.85% bond maturing in 2030 ended lower at 98.31 rupees, yielding 6.09%, against 98.47 rupees, yielding 6.06% at previous close.

Technically, the USDINR Spot pair on a daily chart has formed a Spinning Top Candlestick pattern which is a sign for Bearish Reversal where below 74.50 level will continue its Bearish momentum up to 74.20-74.00 levels. Resistance is at 74.40-74.65 levels.

In the overseas markets, U.S. is shut today, however the dollar Index was flat ahead of the release of Federal Reserve Minutes of June Meeting.

Technically, the Dollar Index has formed a Bearish Engulfing Candlestick where below $92.40 level could see a Bearish momentum up to $92.00-$91.70 levels. Resistance is at $92.35-$92.50 levels.

Source : Equity Bulls

Keywords