Rupee - Dec 20, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee recouped losses to end stronger against the U.S. Dollar, aided by exit of dollar long positions and exporter hedging.

The Rupee ended at 75.91 compared with 76.09 in the previous session.

The unit had briefly depreciated to an intraday low of 76.15 earlier in the session amid Omicron worries and foreign investors selling their profitable Indian stocks.

Meanwhile, regional currencies were weak this Monday amid concerns that a renewed surge in the Omicron variant of the coronavirus and tighter monetary policies could derail economic recovery.

This also kept appreciation bias limited.

Indian government bond yields rose on Monday after the central bank withdrew liquidity through a surprise reverse repo auction today.

The benchmark 6.10% bond ended at 6.44%, the highest since Apr. 16, 2020 against 6.41% yield at the previous close.

Technically, the USDINR Spot pair was unable to sustain above 76.00 level and another trade below could see a sideways to bearish momentum up to 75.80-75.67 levels. Resistance is at 76.06-76.20 levels.

The USDINR Spot pair could trade in a range of 75.80-76.30 levels in coming session.

In the overseas markets, the U.S Dollar was flat, while the benchmark 10-year bond yields is below the 1.4% mark this Monday early morning trade in the European session.

Technically, if the Dollar Index trades above $96.50 level, it could continue a bullish momentum up to $96.80-$97.10 levels. Support is at $96.40-$96.12 levels.

Source : Equity Bulls

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