Rupee - Dec 15, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated marginally against the dollar this Tuesday tracking weakness in most regional currencies as risk appetite waned as many countries are imposing fresh Covid-19 restrictions which could derail a global economic recovery.

The Rupee ended at 73.64 to the dollar compared with 73.58 close on Monday.

Investors also refrain themselves from taking large positions ahead of the Fed monetary policy decision due tomorrow.

Along with the Fed, we have the BoE and BoJ monetary policies this week and their forward guidance on the respective economies will be keenly awaited.

In other news, S&P Global Ratings today revised its prediction for India's economic contraction to 7.7% from 9.0% earlier on rising demand and falling coronavirus infection rates.

The one-year forward premium was at 3.18 rupees against 3.20 rupees in the previous session.

Technically, the USDINR Spot pair is trading on flat note in a very narrow range where it is holding a strong support near 73.40 levels and holding below a strong resistance of 73.75 levels indicating sideways momentum in the counter.

The USDINR Spot pair is expected to trade in a range of 73.45-73.80 levels.

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Source : Equity Bulls

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