Rupee - Oct 26, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated against the dollar and posted its worst day in over 1 month as risk appetite waned in the region due surging coronavirus cases in Europe and the United States pushed investors towards the safe-haven dollar.

The U.S. Dollar took support from rumours that France, Spain and Italy could impose complete lockdown to curb the spread of the coronavirus.

Additionally, the U.S. Dollar also took support amid continuing uncertainty over the U.S. fiscal stimulus ahead of the Presidential elections.

Most Asian currencies are weak this Monday and weighed on sentiments.

The Rupee ended at 73.85 to a dollar compared with 73.62 close on Friday. The rupee had briefly depreciated to 73.89.

The one-year forward premium was at 3.00 rupees against 3.03 rupees in the previous session.

The USDINR Spot pair opened on a positive note at 73.78 levels and made a high of 73.89, low of 73.68 and gave a close at 73.85 levels.

Technically, the USDINR Spot pair has given a breakout above the 21 and the 50 Daily Moving Average where 73.60 will hold immediate support for further upside movement up to 73.90-73.97 levels.

USDINR Spot is expected to trade in a range of 72.60-73.97 levels.

USDINR October futures on NSE is trading up by Rs.0.22 paisa at Rs.73.875.

Source : Equity Bulls

Keywords