Rupee - Oct 29, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated on Friday as fresh lockdowns in Europe spooked investor appetite for risk assets.

The Rupee was quoted at 74.10 this Friday compared with 73.88 in the previous session.

The currency had its worst month against the U.S. currency in five months, as the central bank moved aggressively to cap major upside in the local unit.

The local unit, in early trades, had weakened to 74.16. The Rupee depreciated by 0.7% this week. For the month, it was weak by 0.5%.

Asian currencies were stronger on Friday, while the dollar index was up 0.11% this Friday.

Investors are now focussing on central bank meetings, with the European Central Bank expected to hold off on new measures later in the day and hinting at action in December.

Markets could also look to cues from U.S. GDP data today evening.

The one-year forward premium was at 2.95 rupees against 2.97 rupees in the previous session.

USDINR Spot opened on a positive note at 73.87 levels and made a high of 74.16 level, low of 73.87 and closed at 74.10.

Technically, The USDINR Spot pair has given a breakout of Horizontal trend line which is placed at 73.93 levels and is sustaining above 74.00 levels indicating for a Bullish trend to continue upto 74.23-74.51 levels where Support is at 73.97-73.75 levels.

The USDINR Spot pair is expected to trade in a range of 73.97-74.25 levels.

USDINR November futures on NSE is trading up by Rs.0.34 paisa at Rs.74.4175 this Thursday afternoon.

Currency markets are shut tomorrow on account of local holiday.

Source : Equity Bulls

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