Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee appreciated against the dollar on Monday tracking broad advances in regional peers and strong local equities. Likely absence of the Reserve Bank of India in the spot market also led to some trimming of dollar long positions.
The Rupee at 74.04 to a dollar its strongest since November 8 against the 74.31 close in the previous session.
Asian currencies were trading higher, helped by the dollar index dropping on Friday, after a weak U.S. non-farm payrolls number.
Indian government bond yields rose on Monday with the benchmark 6.10% bond ending at 6.59%, compared with 6.54% on Friday.
Technically, the USDINR Spot pair has breached the support of 200-Daily Moving Average at 74.30 levels indicating a continuation of Bearish trend up to the support zone at 73.90-73.75 levels. Resistance zone is at 74.18-74.30 levels.
The USDINR Spot pair could trade in a range of 73.88-74.30 levels in coming session.
The U.S. Dollar rose on Monday afternoon trade amid rising bets U.S. inflation will bolster the case for higher interest rates.
Technically, if Dollar Index trades below $96.00 levels, it could witness a Bearish momentum up to the support zone at $95.80-$95.56 levels. Resistance zone is at $96.00-$96.40 levels.
The Euro fell this Monday afternoon trade as the European Central Bank's dovish stance on rising prices.
The Sterling and the Yen was this Monday afternoon trade.