Rupee - Jan 19, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. currency tracking a marginally weak dollar index and a rebound in regional equities and currencies.

The Rupee ended at 73.17 compared with 73.28 in the previous session.

The Rupee had initially weakened to an intraday low of 73.31 earlier in the session on the back of dollar demand from importers.

Most Asian currencies appreciated against the U.S. Dollar amid upbeat risk appetite.

Investors will now await comments from Secretary of the Treasury nominee Janet Yellen, on U.S. stimulus measures and the dollar during her Senate confirmation hearing later in the day.

On the central bank side, investors will await key monetary policy decisions from the European Central Bank and the Bank of Japan on Thursday.

The one-year forward premium was at 3.41 rupees, against 3.45 rupees in the previous session.

Technically, the USDINR Spot pair found resistance near 21-Daily Moving Average at 73.31 levels and held support near 73.10 levels indicating a sideways to marginal downside momentum where breakdown below could take the pair towards 73.00-72.85 levels.

However if the pair resumes above 73.25 will activate bullish momentum towards 73.35-73.49 levels.

Source : Equity Bulls

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