Rupee - Oct 23, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended weak against the U.S. Dollar on Friday and posted its worst weekly decline against the U.S. currency in six weeks on persistent dollar purchases by state-run banks to offset the impact of robust foreign inflows.

Risk appetite waned amid uncertainty over the timing of the fiscal stimulus in the U.S. also weighed on sentiments.

The Rupee ended at 73.62 to a dollar this Friday compared with 73.53 in the previous session. For the week, the Rupee depreciated by 0.4%.

Asian currencies were quite choppy through the week but appreciating Yuan capped weakness of the domestic unit.

The one-year forward premium was at 3.03 rupees, unchanged against the previous session.

Technically, USDINR Spot opened on a flat note at 73.66 levels and made a high of 73.665, low of 73.45 and gave a close at 73.55.

USDINR Spot is sustaining 21-DMA which is placed at 73.41 levels, but it has strong resistance near 73.63 levels which is also a 50-DMA below which is indicating a sideways momentum in coming sessions. Resistance is 73.65-73.80 levels & Support is at 73.40-73.25 levels.

USDINR Spot is expected to trade in a range of 72.35-73.63 levels.

USDINR October futures on NSE is trading marginally down by Rs.0.03 paisa at Rs.73.6575 this Friday afternoon.

Source : Equity Bulls

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