Rupee - Dec 11, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended flat this Friday as persistent dollar purchases from RBI offset gains from foreign equity inflows into the domestic markets.

The Rupee ended at 73.65 to the dollar compared with 73.66 in the previous session. For the week the local unit appreciated by 0.2%.

Optimism surrounding the roll-out of covid-19 vaccines and hopes of additional U.S stimulus aid has also helped the local unit.

The dollar index was trading with small gains this Friday afternoon and kept appreciation bias limited.

Markets will look to cues from the IIP number this week and CPI number next week.

Markets will now look to cues from the Fed meeting next week and any fresh triggers from the U.S. fiscal stimulus talks.

The one-year forward premium was at 3.16 rupees against 3.17 rupees in the previous session.

Technically, the USDINR Spot pair is holding a strong support near 73.50 levels from where a bounced back activity can be expected up to 73.83-73.95 levels. Below 73.50 could see a Bearish momentum up to 73.15-72.90 levels.

The USDINR Spot pair is expected to trade in a range of 73.50-73.80 levels.

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Source : Equity Bulls

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