Rupee Wrap - March 21, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar as oil prices rose this Monday as conflict in Ukraine worsened and heightened concerns about the risk of disruptions in energy supplies.

Attacks on Saudi energy facilities by Yemen's Houthi rebels also heightened concerns over global oil supplies.

Weakness among most Asian currencies, ahead of a speech from Federal Reserve Chair Jerome Powell, also weighed on the local currency.

The Rupee ended at 76.12 weakening about 0.4% compared with 75.80 on Thursday.

Traders are awaiting a speech from Fed Chair Powell later today. This comes on the back of hawkish Fed and officials last week.

India's benchmark BSE Sensex equity index declined about 1%, in line with most major Asian shares excluding Japan and some Chinese indexes.

NDF is at 76.17/23 this Monday evening vs. a close at 75.97 on Friday.

Indian bond yields ended largely unchanged. The benchmark 6.54% ended 6.78%, against 6.78%, on Thursday.

Technically, if USDINR spot pair continues to trade above 76.11 level, it could continue to witness a bullish momentum up to resistance zone at 76.25-76.40. A trade below could pull the pair to the support zone at 75.8-75.60.

The U.S. Dollar was flat on Monday evening in Asian trade with investors awaiting remarks from U.S. Federal Reserve chair Jerome Powell later in the day and from other central bank policymakers this week for monetary policy clues.

Technically, if Dollar Index trades continues to trade below $98.25 it could continue to remain under pressure and test the support zone at $98.17-$98.05. A trade above could push the Index to the resistance zone at $98.40-$98.50.

Source : Equity Bulls

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