Market Commentary

Rupee Wrap - March 24, 2022 - Reliance Securities

Posted On : 2022-03-24 20:59:39( TIMEZONE : IST )

Rupee Wrap - March 24, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar for a 4th straight session against the dollar, as volatile global oil prices dampened appetite for risk assets, including local equities.

The Rupee ended at 76.37 a dollar, the weakest since March 15 and compared with 76.30 close on Wednesday.

Briefly the local unit weakened to a low of 76.41 in early trade and traded in narrow 16 paisa band this Thursday.

Most EM and Asian currencies were mostly weaker, while the dollar index rose and weighed on sentiments.

NDF is at 76.30/35 this Thursday evening vs a close at 76.51 on Wednesday.

Indian bond yields ended little changed with the benchmark 6.54% ending at 6.83% unchanged against yesterday's close.

Technically, the USDINR Spot resistance zone is at 76.42-76.60, while support zone is at 76.22-76.10 and the pair could trade within the zone in the coming session.

The U.S. Dollar is trading higher this Thursday evening in Asian trade on hawkish Fed remarks.

Fed policymakers signalled on Wednesday that they could take more aggressive action to bring down inflation, including a possible half-percentage-point interest rate hike at the next policy meeting in May.

U.S. 10-year benchmark also rebound from yesterday's lows and is trading near November 2011 high's supported by hawkish Fed remarks.

Technically, Dollar Index is trading above $98.65 and a sustained trade above could push the index up to the resistance zone at $99.10-$99.25. However, a trade below could pull the Index to the support zone at $98.40-$98.20.

Source : Equity Bulls


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