Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee appreciated on Friday against the greenback tracking broad declines in the dollar index, dollar sales by exporters & companies and as Asia's share markets advanced on Friday.
The Rupee ended at 76.43 from 76.48 close on Thursday.
However, for the month the Rupee depreciated by 0.8% as the risk of a spike in global inflation, along slowdown in global growth lifted the Greenback to a 2-decade high.
Moreover, gas crisis in Europe and fresh Covid-19 outbreak in China weakened the Yuan and other Asian and EM peer and weighed on sentiments.
NDF is currently trading at 76.4/22 this Friday evening vs. a close at 76.54 on Thursday.
Technically, the USDINR Spot pair has closed below an important pivot of 76.50 level and a sustained trade below the level next week could pull the pair to the support zone at 76.25-76.10 levels. However, a trade back above will push the pair to the resistance zone at 76.60-76.80 levels.
Indian bond yields ended flat on Friday with the benchmark 6.54% bond ending at 7.14% against 7.16% close on Thursday.
The U.S. Dollar is trading weaker this Friday evening in Asian trade, amid some profit taking ahead of Fed meeting next week and the PCE price Index, a Fed favoured inflation gauge today.
The Euro is trading stronger against the Dollar this Friday evening in Asian trade despite Euro zone inflation hitting fresh record high in April and Germany has returned to growth.
According to statistics office Eurostat estimates, Euro zone inflation rose to 7.5% in April, up from March's 7.4%.
German GDP increased by 0.2% in the January-March quarter, following a 0.3% contraction in the last quarter of 2021.
Technically, if the Dollar Index continues to sustain above an important pivot at $103.15 then the greenback could continue it upside momentum up to the resistance zone at $ 103.50-$104.00. However, a break down below the pivot could pull the greenback back to the support zone at $102.65-102.30.