Rupee - Aug 25, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated for the first time in 3 sessions against the U.S. dollar, dragged down by dollar demand from oil marketing companies and importers.

The Rupee ended at 74.25 compared with 74.19 in the previous session.

The unit opened flat at 74.20, but then fell to the day's low of 74.30.

The Rupee also weakened amid talks of speculative dollar demand from foreign banks on expectations that the Reserve Bank of India could continue to build up its FX reserves.

Technically, the USDINR Spot pair ended above 74.20 level indicating a sideways to marginal upside momentum up to 74.40-74.50 levels. Support is at 74.05-74.00 levels.

The USDINR Spot pair could trade in a range of 74.00-74.50 levels.

Meanwhile, the dollar index edged higher to 92.93 amid concerns that the highly contagious Delta coronavirus variant could derail a global economic recovery and weighed on the currency this Wednesday.

The focus was on Fed Chairman Jerome Powell's upcoming speech at the Jackson Hole symposium on Friday.

Technically, the Dollar Index is trading near $93.00 but a trade below could see some downside correction up to $92.88-$92.65 levels. Resistance at $93.15-$93.35 levels.

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Source : Equity Bulls

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