Rupee Wrap - April 28, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee reversed losses to rise for the 3rd straight session against the U.S. dollar, lifted by foreign fund inflows for the upcoming LIC IPO.

The Rupee ended at 76.48 this Thursday compared with 76.53 on Wednesday and rebounding from the day's low of 76.71.

Additionally, exporter dollar sales also aided sentiments.

However, appreciation bias was capped as the dollar continued to remain strong supported by the Fed's likely policy normalisation.

Meanwhile the EM and Asian peers currencies mostly eased against the dollar ahead of U.S. GDP and PCE price index data.

NDF is currently trading at 76.54/60 this Thursday evening vs. a close at 76.40 on Wednesday.

Technically, if the USDINR Spot pair remains above 76.50 level it could witness sideways to upside momentum up to the resistance zone at 76.65-76.88 levels. A break below could pull the pair to support zone at 76.48-76.35 levels.

The USDINR Spot pair could trade in a range of 76.35-76.80 levels in coming session.

Indian bond yields ended higher as traders added short positions ahead of a debt sale on Friday. The benchmark 6.54% bond ended at 7.16% against 7.08% close on Wednesday.

The U.S. Dollar is trading stronger, while the Euro and the Sterling is trading weaker against the Dollar this Thursday evening in Asian trade.

The Japanese Yen tumbled over 1.5% and shot past the key level of 130 yen for the first time since 2002 this Thursday evening after the Bank of Japan remained extremely dovish on its policy by offering to buy endless amounts of bonds every session as needed.

Technically, if the Dollar Index sustains above an important pivot at $103.50 then the greenback could continue it upside momentum up to the resistance zone at $103.69-103.88. However, a trade below could pull the greenback back to the support zone at $103.11-$102.95.

Source : Equity Bulls

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