Rupee - Dec 16, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended with marginal gains against the U.S. currency on Wednesday tracking the weakness of the dollar index and foreign fund inflows.

The Rupee ended at 73.57 to the dollar compared with 73.64 in the previous session.

The Dollar Index was down 0.32% at 90.18 this Wednesday afternoon trade in Asia lingering near its lowest level in over two years ahead of the Fed's policy review tonight where the U.S. central bank could provide forward guidance on asset purchases.

Meanwhile, risk appetite improved in the market amid reports of progress on reaching a deal on the coronavirus relief bill in the U.S. House of Representatives.

Asian currencies were mostly higher this Wednesday and lent support.

The one-year forward premium was at 3.21 rupees against 3.18 rupees in the previous session.

Technically, the USDINR Spot pair still holds a strong support near 73.40 levels from where it has bounced back and started trading above 73.55 levels indicating sideways momentum to continue in the coming session where breakout above 73.70 levels could see a bullish momentum.

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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