Rupee - Jan 4, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. currency tracking upbeat Asian peers on the back of a broad decline in the dollar index.

The Rupee ended at 73.02 compared with 73.12 in the previous session. Earlier in the session, it appreciated to a four-month high of 72.91, but pared gains on the back of dollar purchases.

The Chinese yuan led Asian currencies higher, after strengthening to an over-two-year high of 6.44 to the dollar earlier in the session. Other Asian currencies like the Indonesian rupiah, the Korean won and the Singapore dollar also appreciated against the Greenback this Monday.

Meanwhile, the U.S. Dollar continued to struggle this Monday afternoon in Asian session. The Index is trading down 0.57% at 89.43.

The minutes of the December Fed meeting, due this week could reinforce that dovish stance, which could continue to weigh on the Greenback.

In addition to the Fed minutes, traders will be eyeing the U.S. ISM manufacturing and non-manufacturing data and the U.S. monthly jobs report.

Apart from these, traders will be following the runoff elections in the U.S. state of Georgia which could decide who controls the Senate.

The one-year forward premium was at 3.34 rupees, unchanged against the previous session.

Technically, the USDINR Spot pair has bounced back from 72.81 levels where it took a support of lower band of Falling Channel formation indicating a bounce back up to 73.12-73.25 levels. Support holds at 72.90-72.75 levels.

The USDINR Spot pair could trade in a range of 72.80-73.15 levels in the coming session.

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Source : Equity Bulls

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