Rupee - Dec 17, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended flat against the U.S. Dollar this Thursday, as RBI presence in the markets offset the impact of a weak dollar index and foreign fund inflows.

The Rupee ended at 73.60 to the dollar compared with 73.57 in the previous session. The rupee, in early trades, had risen to an intraday high of 73.39.

Meanwhile, most of the Asian currencies were stronger against the U.S. Dollar this Thursday and lent support.

The one-year forward premium was at 3.23 rupees against 3.21 rupees in the previous session.

In other news, ICRA said that the Indian economy likely to contract 7.8% in this financial year, with a contraction of 1% and growth of 1.3% seen in the third and fourth quarters.

Technically, the USDINR Spot pair still holds a strong support near 73.35 levels from where it has bounced back and closed above 73.55 levels indicating for a sideways momentum to continue in coming session.

However, a breakout above 73.70 levels could see a bullish momentum. On the other hand, below 73.30 levels could see a downside pressure up to 73.00-72.85 levels.

The USDINR Spot is expected to trade in a range of 73.30-73.70 levels.

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Source : Equity Bulls

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