Rupee Wrap - Jan 3, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated for a 3rd straight session against the U.S. dollar tracking upbeat local equities and weak Dollar this Monday.

However, importers' dollar demand and speculation that the Reserve Bank of India may not allow the local currency to appreciate from current levels limited gains.

The Rupee ended 74.26 compared with 74.33 close on Friday.

The local currency had briefly weakened to an intraday low of 74.46 this Monday.

Meanwhile, India's benchmark BSE Sensex ended 1.6% higher while other regional peers also rose.

On the currencies side, most Asian peers were weak this Monday afternoon.

Indian bond yields edged higher on Monday with the benchmark 6.10% bond ended at 6.46%, against 6.45% close on Friday.

Technically, the USDINR Spot pair is trading near its 200-Daily Moving Average at 74.25 levels and a sustained trade above the level could take the pair up to 74.40-74.65 levels. A trade below could pair to the support zone at 74.10-74.00 levels.

The USDINR Spot pair could trade in a range of 74.15-74.55 levels in coming session.

On the overseas side, the dollar index was weak this Monday afternoon trade in Asia.

The Fed minutes, due Thursday and the December jobs report from the U.S. on Friday will be the driving factors this week.

Technically, if the Dollar Index Dollar Index is taking a support near its 50-Daily Moving Average at $95.60 level. Resistance zone is at $95.88-$96.16.

The Euro and the Sterling was weak on Monday afternoon trade in Asia.

Source : Equity Bulls

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