Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated for the second day against the Dollar as regional risk appetite waned amid lack of progress on a fiscal stimulus bill in the United States.
Dollar purchases likely for defence-related purposes and dollar outflows may have also weighed on the local unit this Thursday.
The Rupee ended at 73.66 to the dollar compared with 73.56 in the previous session.
U.S. Dollar Index was trading marginally lower, while most of the Asian currencies were marginally weak and also weighed on sentiments.
Markets will now await the U.S. FDA meeting conclusion today on the emergency use of the covid-19 vaccine.
Markets will await the release of weekly jobless claims and inflation from the U.S.
Additionally, markets also await the conclusion from the ECB meeting today, widely expected to increase the Pandemic Emergency Purchase Programme by 500 billion euros and extend more long-term low-cost loans to banks.
The one-year forward premium was at 3.17 rupees against 3.23 rupees in the previous session.
Technically, the USDINR Spot pair was unable to cross above 50-Daily Moving Average at 73.85 levels and below will continue to trade downside support at 73.50-73.35 levels. Resistance is at 73.98-74.10 levels.
The USDINR Spot pair is expected to trade in a range of 73.50-73.80 levels.
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