Rupee - Dec 9, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar amid speculation that the Reserve Bank of India will resume dollar purchases to mop up dollar inflows.

The Rupee ended at 73.56 to the dollar compared with 73.52 in the previous session.

Meanwhile, Dollar Index remained weak this Wednesday afternoon trade weighed down by optimism that the global economy could make a robust recovery in 2021 supported by hope surrounding the coronavirus vaccines and accommodative monetary policies by central banks.

Asian currencies were broadly higher and India's equities rose this Wednesday and lent support to the currency markets this Wednesday.

Markets will look ahead to tomorrow's the European Central Bank which is likely to expand the stimulus programme.

The one-year forward premium was at 3.23 rupees against 3.22 rupees in the previous session.

Technically, the USDINR Spot pair is sustaining below 50-Daily Moving Average at 73.85 levels below which will continue to trade downside support at 73.30-73.15 levels. However above 73.75 will resume upside momentum up to 73.88-74.00 levels.

The USDINR Spot pair is expected to trade in a range of 73.30-73.75 levels.

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Source : Equity Bulls

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