Rupee - Dec 15, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar on Wednesday amid increasing bets that the U.S. Federal Reserve could accelerate the pace of policy normalisation and signal more rate hikes for next year.

Investors now see a more than 50% chance of a rate hike in the U.S. by May 2022, according to the CME Group's FedWatch programme, amid concerns of inflation.

Additionally, absence of RBI's, dollar outflows also weighed on the local unit.

The Rupee ended at 76.23 compared with 75.87 close in previous session.

Indian government bond yields settled flat as investors away from the market ahead of the U.S. Federal Reserve monetary policy decision due later tonight.

The benchmark 6.10% bond ended at 6.36%, unchanged from yesterday.

Regional equities ended broadly lower, while currencies were mixed. India's benchmark BSE Sensex slipped 0.6% on Wednesday and weighed on sentiments.

Technically, the USDINR Spot pair is heading towards its all-time high 76.96 level indicating for a strong uptrend. Resistance for now is at 76.36 and break above could push the pair to 76.88 levels. Support zone is at 76.15-75.98 levels.

In the overseas markets, the dollar index was flat ahead of the U.S. Federal Reserve decision tonight.

Technically, if Dollar Index sustains above $96.30 levels, it will continue its bullish momentum up to $96.70-$96.98 levels. Support zone is at $96.15-$95.98 levels.

Source : Equity Bulls

Keywords

Rupee INR RelianceSecurities