Rupee - Dec 22, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended marginally weak against the U.S. dollar, tracking weakness in most regional currencies on concerns that a infectious new coronavirus strain could slow down the prospects of a global economic recovery.

The Rupee ended at 73.84 to the dollar compared with 73.78 on Monday. The rupee had earlier depreciated to a low of 73.95, the weakest in two weeks, but pared losses on dollar sales by foreign banks.

Most of the Asian currencies were weaker against the dollar this Tuesday and weighed on sentiments.

The Dollar Index was up 0.3% at 90.31, adding to yesterday's rise amid safe haven appeal for the greenback, while ,ost non-dollar currencies are trading weak against the greenback this Tuesday amid risk aversion.

Markets could look to cues from the U.S. GDP data and other data points today for further cues.

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

Technically, the USDINR Spot pair traded on a flat note but was unable to sustain above 74.00 levels. 73.70 holds an immediate support. Resistance is at 73.98-74.12 levels.

The USDINR Spot pair is expected to trade in a range of 73.70-74.12 levels.

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Source : Equity Bulls

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