Rupee - Jan 5, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the dollar this Tuesday tracking losses in most Asian currencies on concerns about more lockdowns in major economies.

The Rupee also came under pressure amid rumours on heavy dollar purchases by foreign banks on news of geopolitical tensions related to Iran.

The Rupee ended at 73.18 compared with 73.02 in the previous session.

The Rupee weakened despite the Dollar Index remaining sluggish against the basket of currencies this Tuesday.

Furthermore, uncertainty surrounding the Georgia runoff elections also added to the risk-off tone in markets.

However, India's benchmark BSE Sensex closed 0.5% higher, its tenth consecutive daily rise probably on the back of FPI flows and capped weakness of the local unit.

The one-year forward premium was at 3.30 rupees, against 3.34 rupees in the previous session.

Technically, the USDINR Spot pair yesterday took a support of the lower band of Falling Channel which is placed at 72.80 levels from which it has bounced back and is trading near the 73.20 levels and suggests a bullish reversal in the counter. Support is at 73.05-72.85 & Resistance is at 73.35-73.50 levels.

The USDINR Spot pair could trade in a range of 72.95-73.35 levels in the coming session.

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Source : Equity Bulls

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