Rupee - Jan 7, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S Dollar on Thursday weighed down by rumoured dollar purchases by the Indian Central bank to counter the impact of equity and fund flows.

The Rupee ended at 73.33 compared with 73.10 in the previous session. The rupee fell 0.3% today, and logged its worst day since November 12.

Reuters reported that foreign banks were receiving heavily in the forwards market, sending the one-year forward premium lower to 3.28 rupees against 3.32 rupees yesterday.

Meanwhile, risk appetite has improved amid the likelihood of more U.S. fiscal stimulus after a victory for both the Democratic Party candidates in runoff elections in the Georgia state.

The dollar index was at firm, while Brent crude oil was trading gains this Thursday and also weighed on sentiments.

Investors will look ahead to data from the U.S. for further cues. Jobless claims and non-manufacturing PMI could have an impact on the markets.

Technically, the USDINR Spot pair had a positive session forming a Bullish Candlestick where it bounced back from 73.00 levels indicating a bullish momentum up to 73.50 levels. Support is at 73.10-72.98 levels.

The USDINR Spot pair could trade in a range of 73.10-73.50 levels in the coming session.

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Source : Equity Bulls

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