Rupee - Dec 10, 2020 - Reliance Securities

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.

Disclaimer: The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through RSL nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security(ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of RSL shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information / opinions / views contained herein.

Source : Equity Bulls

Keywords