Rupee Wrap - Feb 14, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar amid geopolitical tensions in Eastern Europe.

The Rupee ended at 75.61 compared with 75.38 close on Friday.

The unit had briefly appreciated to an intraday high of 75.36 amid likely dollar sales by a large engineering and construction firm.

The Rupee also came under pressure as crude oil prices surged today and a rise in oil prices also threatens to add to inflationary pressures on India and widen trade deficits.

Investors could await domestic inflation data due today and is expected to show India's retail inflation accelerated to 6% in January.

Asian equities and currencies also came under pressure this Monday and weighed on the local unit.

NDF is at 75.54/55 this Monday evening vs a close at 75.55 in the previous session.

Indian government bond yields fell on Monday as traders awaited domestic headline inflation data, due later today.

The benchmark 6.54% bond ended at 6.67%, lowest since January 25, versus 6.70% close on Friday.

Technically, the USDINR Spot pair sustained above 75.50 level and could continue its bullish momentum up to 75.77-75.95 levels. Support zone is at 75.48-75.30 levels.

The USDINR Spot pair could trade in a broad range of 75.40-75.85 levels in the coming session.

The U.S. Dollar is trading with gains this early Monday evening in Asian trade, as investors rushed into safe-haven assets on fears that Russia is preparing to invade Ukraine.

Technically, the Dollar Index holds a support zone near $95.80-$95.45 levels. Resistance is at $96.25-$96.32 levels.

Source : Equity Bulls

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