Rupee - Jan 20, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. currency in three weeks, tracking a broad dollar decline amid a firm risk appetite in the region.

The Rupee ended at 73.03 compared with 73.17 in the previous session. The rupee appreciated 0.2% this Wednesday, its best day since Dec. 31.

The Dollar Index was marginally down this Wednesday by 0.05% at 90.45 extending from yesterday's weakness supported by firm risk appetite in the region.

Most of the Asian currencies were stronger against the U.S. Dollar with the Korean won and the Singapore dollar rose 0.2% each, extending yesterday's rally.

Also supporting the currencies were equity-related inflows into the domestic equity markets. Investors have pumped in around $2.6 billion in Indian equities so far in January.

The one-year forward premium was at 3.47 rupees, against 3.41 rupees in the previous session.

Technically, the USDINR Spot pair slipped below 73.00 levels today after struggling near 73.15-73.25 levels. Therefore below 73.00 could see a Bearish momentum up to 73.85-73.60 in coming sessions.

However a rebound back above 73.15 level will continue its sideways momentum where upside resistance is held at 73.25-73.38 levels.

Source : Equity Bulls

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