Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated for a 5th consecutive session against the U.S. dollar, tracking the strong crude oil prices and weak Asian currencies.
The Rupee depreciated by 0.30% its worst day since Jun. 1 and ended at 73.27 compared with 73.07 in the previous session.
Meanwhile, after two months of quiet, the primary market will get busy again with at least four initial public offerings expected this week and capped further upside due to the possible dollar inflows into the domestic markets.
The Rupee also was under some pressure this Monday tracking a rebound on the dollar index as investors' adjusted positions ahead of the U.S. Federal Reserve meeting this week.
Market participants will be cautious of a hawkish surprise that could at least temporarily lift the U.S. dollar.
The one-year forward premium was at 3.39 rupees, against 3.31 rupees in the previous session.
Technically, the USDINR Spot pair ended above the 21-Daily Moving Average at 72.95 levels and sustained trade above the level could push the pair further upside up to 73.45-73.70 levels. However, a break below could pull the pair to 72.70 levels.
In the overseas markets, the Dollar Index has formed a Bullish Candlestick where Index has bounced back from 21-DMA at $90.05 levels, and above which will continue to trade on positive note up to $91.04-$91.60 levels. However, a break below the level will pull the Index back to $89.50 levels.