Rupee - Dec 14, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. currency supported by foreign portfolio flows and a weak U.S. dollar.

The Rupee ended at 73.58 to the dollar compared with 73.65 on Friday.

The Dollar index was down by almost 0.5% at 90.55 this Monday afternoon trade, hovering near its lowest level since April 2018.

Most if the non-dollar currencies were stronger against the U.S Dollar primarily on the back of a possibility of a Brexit deal.

Asian currencies were mixed but Chinese Yuan was stronger against the Dollar on optimism on growth amid vaccine rollouts in developed nations.

The Federal Reserve will come out with its monetary policy review on Wednesday. We believe that the U.S. Fed could provide fresh hints toward adjustments in the asset purchase program and could weigh on the greenback.

Markets could look to cues from retail inflation data, due post market hours today, it is expected to show that India's inflation likely slowed during November, but remained above 7% for at least the sixth straight month.

The one-year forward premium was at 3.20 rupees against 3.16 rupees in the previous session.

Technically, USDINR Spot is holding a strong support near 73.40 levels below which could see a downside pressure up to 73.28-73.15 levels. However rebound above 73.66 levels could see an upside push up to 73.75-73.90 levels.

USDINR Spot is expected to trade in a range of 73.28-73.70 levels.

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Source : Equity Bulls

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