Rupee Wrap - March 16, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar in line with gains in the Asian currencies and equities ahead of the Federal Reserve's policy statement.

Asian currencies and equities also gained amid improved in risk appetite after hopes of compromise between Russia and Ukraine.

The Rupee ended at 76.27 gained by 0.5%, this Wednesday compared with 76.61 close on Tuesday.

The local currency tested an intraday high of 76.2350.

India's benchmark BSE Sensex share index climbed 1.86% and also helped in today's gains.

NDF is at 76.18/76.25 this Wednesday evening vs a close at 76.21 on Tuesday.

Indian bond yields ended lower as investors awaited the Federal Reserve policy decision later today.

The benchmark 6.54% bond ended at 6.79%, lowest since February 28 against 6.82% close on Tuesday.

Technically, if the USDINR spot pair trades below 76.30 levels, it could witness a downside momentum up to the support zone at 76.12-76.00. A trade above could push the pair back to the resistance zone at 76.40-76.50.

The USDINR Spot pair could trade in a range of 76.00-76.45 levels in the coming session.

The U.S. Dollar is trading marginally weaker this Wednesday evening in Asian trade as risk appetite improved after Russian Foreign Minister Sergei Lavrov said peace talks with Ukraine were not easy but there was hope for compromise.

The Euro and the Sterling was trading stronger this Wednesday evening in Asian trade, while the Yen was flat this late in Wednesday evening trade ahead of the Fed.

Technically, if Dollar Index trades below $98.50 it could witness a downside momentum up to the support zone at $98.00-$97.05. A trade above could continue to push the Index to the resistance zone at $98.75-$99.00.

Source : Equity Bulls

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