Rupee Wrap - Feb 23, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the dollar on Wednesday tracking recoveries in local equities and U.S. equity futures.

The Rupee ended at 74.56 this Wednesday from 74.88 close on Tuesday.

The Rupee also tracked other Asian currencies which ended with gains against the dollar.

Meanwhile, dollar selling from exporters and some speculative short on the dollar amid inflows into the domestic IPO markets also likely helped the local unit this Wednesday.

Indian government bond yields fell as investors awaited this week's debt sale. The benchmark 6.54% bond ended at 6.74% from of 6.75% close on Tuesday.

Currency and debt market traders and investors will now await the minutes of the Monetary Policy Committee's February policy review tomorrow.

Technically, the USDINR Spot pair ended below 74.60 level indicating a sideways to downside momentum up to the support zone at 74.40-74.25 levels. Resistance zone is at 74.65-74.80 levels.

The USDINR Spot pair could trade in a range of 74.35-74.70 levels in coming session.

The U.S. Dollar is trading weaker against the basket of currencies while the Euro, the Sterling and the Yen were trading stronger against the greenback this Wednesday evening in Asian trade.

Technically, Dollar Index is trading on sideways momentum but a trade below 21 & 50 Daily Moving Average could extend downside momentum up to the support zone at $95.70-$95.30 levels. Resistance zone is at $96.00-$96.46 levels.

Source : Equity Bulls

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