Indian Rupee - Oct 21, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar this Wednesday supported by purchases by the central bank in anticipation of inflows into the domestic equity markets.

The Rupee ended at 73.58 to a dollar compared with 73.46 in the previous session. Intraday low was 73.62.

Risk sentiment in the region improved on renewed hopes of a U.S. fiscal stimulus deal being reached before the Nov. 3 presidential elections.

The upbeat risk sentiment sent the dollar index to one-month lows. The Chinese yuan appreciated against the U.S. Dollar led Asian currencies higher this Wednesday and kept upside limited for the USDINR spot pair.

The one-year forward premium was at 3.06 rupees, against 3.02 rupees in the previous session.

Technically, USDINR Spot opened on a flat note at 73.45 levels and made a high of 73.63, low of 73.34 and gave a close at 73.58 levels.

USDINR Spot after a long congestion has crossed above 21-DMA which is placed at 73.42 levels above which could see a bullish Reversal up to 73.67-73.86 levels in coming sessions. Support holds at 73.40-73.28 levels.

USDINR Spot is expected to trade in a range of 72.40-73.86 levels.

USDINR October futures on NSE is trading up by Rs.0.13 paisa at Rs.73.6475 from last session.

Source : Equity Bulls

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