Rupee - Dec 21, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended weak against the U.S. Dollar as risk appetite in the region weakened after the U.K imposed lockdowns to curb the new strain of Covid-19, pushing investors to the safety of the dollar.

The variant, which officials say is up to 70% more transmissible than the original, prompted concerns about a wider spread which has prompted several European countries to take measures to prevent people arriving from Britain, including bans on flights and trains.

The Rupee ended at 73.78 to the dollar compared with 73.56 on Friday. The rupee fell 0.3% today, its biggest one-day decline since Nov. 12.

The local unit also tracked the losses in Asian currencies, which were weaker by at least 0.3% this Monday trade.

The Dollar Index was up 0.98% at 90.89 in Monday's afternoon, extending from Friday's rise and was headed for its biggest single-session rise since Sep. 21.

The one-year forward premium was at 3.26 rupees against 3.24 rupees in the previous session.

Technically, the USDINR Spot pair had a positive session after a long consolidation in a narrow range. It has given a breakout above 73.70 levels where further could see 73.95-74.10 levels. Support will be at 73.55-73.40.

The USDINR Spot pair is expected to trade in a range of 73.55-73.95 levels.

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Source : Equity Bulls

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