Rupee - Dec 2, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar as possible intervention by the central bank in the spot market.

The Rupee ended at 73.80 to the dollar compared with 73.68 in the previous session.

In early trades, the rupee had appreciated to an intraday high of 73.44 tracking the weakness of the U.S Dollar.

The one-year forward premium touched a high of 3.24 rupees today, the highest since Aug. 27, compared to 3.19 rupees yesterday. It ended at 3.21 rupees.

This is likely due to RBI's intervention in the forwards market to neutralize the impact of spot purchases.

Meanwhile, other Asian currencies were boosted by a further fall in the dollar index to its lowest levels since April 2018.

Investor focus will be on the Monetary Policy Committee's three-day interest rate-setting meeting that starting today, with the decision due Friday.

Technically, the USDINR Spot pair has bounced back from 73.44 levels, its 50-Daily Moving Average and could resume its upside momentum. However Bearish sentiment could continue below 73.75 levels.

Support is at 73.50-73.19 levels. Resistance is at 73.85-74.10 levels. USDINR Spot pair is expected to trade in a range of 73.50-74.10 levels.

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Source : Equity Bulls

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