Rupee Wrap - Feb 28, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar on Monday and posted the biggest monthly decline in 5 months, after Russian President Vladimir Putin ordered a military operation in Ukraine, sending investors rushing to safe-haven assets.

The Rupee ended at 75.34 per dollar compared with 75.29 on Friday.

The Rupee has weakened to an intraday low of 75.75 earlier in today's session, its weakest level since December 20.

For the month, the Rupee depreciated by 1%, the biggest drop since September.

However, later by the end of the session, the Rupee were off session lows possibly on RBI presence in the markets and talks that Russia and Ukraine are sitting together for peace talks later in the day.

NDF is at 75.31 vs a close of 75.00 on Friday and is off session low at 75.78.

So are the futures March contract, which has gained for the session.

Indian government bond yields rose on Friday and for the 3rd consecutive month as worries over record borrowing in the next financial year and a consistent surge in oil prices due to geopolitical tensions dented appetite.

The benchmark 6.54% bond ended at 6.77%, from 6.75% on Friday.

Technically, the USDINR spot pair has given correction from its multiple resistance zone of 75.70-75.80 levels. However, it holds a strong support of 75.20-74.95 levels.

The USDINR Spot pair could trade in a range of 75.20-75.70 levels in the coming session.

The U.S. Dollar Index was trading solidly higher on Monday evening trade in Asia after Western nations imposed tough new sanctions on Russia for its invasion of Ukraine.

However, the Dollar Index was off session highs ahead of the meeting between Russia and Ukraine this Monday.

Technically, if Dollar Index continues to remain above $97.00 it could witness a bullish momentum up to $97.30-97.88 levels. Support is at $97.00-$96.77 levels.

Source : Equity Bulls

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