Rupee - Sep 13, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated on against the U.S. Dollar as the greenback extends gains this Monday amid expectations of an earlier-than-expected bond taper by the Federal Reserve.

Moreover, weak equities also fuelled demand for the safe-haven dollar, while most EM and Asian currencies were weak this Monday afternoon trade and weighed on the local currency.

Importers hedging their near-term payables also contributed to the rupee's weakness this Monday.

The Rupee ended at 73.67 compared with 73.50 in the previous session.

Technically, the USDINR Spot pair has bounced back from 200-Daily Moving Average which at 73.57 level and now a breakout above 73.70 will continue its bullish momentum up to 73.88-74.00 levels. Support is at 73.60-73.45 levels.

The USDINR Spot pair could trade in a range of 73.45-73.85 levels in coming session.

In the overseas markets, the U.S. Dollar Index hit 2-week high this Monday afternoon trade ahead of U.S. economic data is due out this week, starting with U.S. consumer price data on Tuesday, which will set the economy's progress ahead of the Federal Reserve's meeting next week.

Technically, the Dollar Index could see sideways to marginal upside momentum where it holds a support at $92.36-$92.20 levels. Resistance is at $92.85-$93.08 levels.

Source : Equity Bulls

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