Rupee - Dec 1, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar this Tuesday supported by inflows into the domestic equity markets and absence of the central bank from the market.

Persistent dollar sales by foreign banks, weak U.S. Dollar and upbeat risk appetite in Asia further contributed to the currency's gains this Tuesday.

The Rupee ended at 73.68 to the dollar compared with 74.05 in the previous session.

Briefly the currency had risen to 73.44 earlier in the session, the highest since Oct. 21.

The key triggers for the market this month will be Fed Chair Jerome Powell's testimony due later in the day along with RBI's monetary policy meeting this week and the FOMC meeting this month.

The one-year forward premium was at 3.19 rupees against 3.15 rupees in the previous session.

Technically, the USDINR Spot pair has bounced back from $73.44 levels but is still sustaining below 50-Daily Moving Average (DMA) at 73.84 levels indicating Bearish sentiment to continue below the DMA.

Support is at 73.50-73.73.19 levels. Resistance is at 73.75-73.95 levels. USDINR Spot pair is expected to trade in a range of 73.30-73.85 levels.

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Source : Equity Bulls

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