Market Commentary

Rupee Wrap - Jan 4, 2022 - Reliance Securities

Posted On : 2022-01-04 17:19:19( TIMEZONE : IST )

Rupee Wrap - Jan 4, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. currency on Tuesday, weighed down by prospects of an earlier-than-anticipated interest rate hike by the Federal Reserve.

The Rupee ended at 74.55, weakening by 0.4% this Tuesday compared with 74.26 close in the previous session.

Most of the Asian peers were weak this Tuesday and weighed on the local unit.

The Indonesian Rupiah, Korean Won and Malaysian Ringgit weakened by least 0.2% each this Tuesday.

The spread of the Omicron variant of the coronavirus in India also made investors risk averse and weighed on sentiments.

Indian government bond yields settled higher on Tuesday with the benchmark 6.10% bond ended at 6.52 against 6.46% close in the previous session.

Technically, if the USDINR Spot pair trades above 74.60 levels it could push the pair up to 74.93-75.00 levels. A trade below could pull the pair to the support zone at 74.26-74.07 levels.

The U.S. dollar was trading with gains on Tuesday evening against the basket of currencies, boosted by expectations of U.S. Federal Reserve rate hikes.

Technically, the Dollar Index resistance zone is at $96.25-$96.45. support zone range is at $96.10-$95.99.

The Euro, the Sterling and the safe haven Yen was flat this Tuesday evening trade.

Source : Equity Bulls


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