Rupee Wrap - Feb 18, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated on Friday and logged its best week against the U.S. dollar in 8 weeks, as investors booked profits on long dollar positions after minutes of the Federal Reserve's latest meeting came on expected lines.

The Rupee ended at 74.66 its strongest since January 31, compared with 75.11 close on Thursday.

The Rupee appreciated by nearly 1% this week, its biggest gain since December 24.

The dollar index is headed for a weekly drop, while the crude oil prices also took a tumble this Friday evening trade and aided sentiments.

Most of the Asian and EM peers were mixed on Friday but were stronger for the week lifted by weak dollar.

NDF is at 74.63/67 this Friday evening vs a close at 75.07 in the previous session.

Indian government bond yields were down for a second straight week, as auction cancellation and a dip in crude oil prices lifted sentiments.

The benchmark 6.54% bond ended at 6.66%, against 6.67% close on Thursday.

Technically, the USDINR Spot pair has given a breakdown below 50 -Daily Moving Average at 74.74 levels and sustained trade below continue to pull the pair up to the support zone at 74.40-74.22 levels. Resistance zone is at 74.74-74.85 levels.

The USDINR Spot pair could trade in a range of 74.40-74.88 levels in coming session.

The U.S. Dollar was flat, while the Euro and the Sterling was also trading flat this Friday evening in Asian trade.

Technically, Dollar Index is trading below 21 and 50-Daily Moving Average at $95.99 levels and sustained trade below continue to pull the Index up to the support zone at $95.64-$95.17 levels. Resistance zone is at $95.99-$96.18 levels.

The safe-haven Japanese yen weakened on late Friday's trade as investors took comfort from news of talks between the United States and Russia over the crisis in Ukraine.

Source : Equity Bulls

Keywords

RupeeWrap CurrencyUpdate INR RelianceSecurities