Rupee - Jan 22, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated on Friday and for the 2nd straight week against the U.S. currency, supported by portfolio inflows and a broad dollar decline.

However, possible intervention from the Reserve Bank of India limited gains in the local unit kept it in a narrow range throughout the week.

The Rupee ended at 72.98 compared with 72.99 in the previous session. The local unit strengthened 0.1% this week, adding to last week's 0.2% appreciation.

Foreign investors have invested over $3 billion in Indian equities so far in January, adding to the $8.5 billion in December and almost $10 billion in November.

Meanwhile, regional currencies ended weak this Friday, but remained range bound in a choppy range throughout the week.

The U.S. Dollar Index was last trading with small gains this Friday afternoon session and capped gains of the local unit.

The one-year forward premium was at 3.57 rupees, against 3.49 rupees in the previous session.

Technically, the USDINR Spot pair was unable to sustain above 73.10 levels and ended below 73.00 levels indicating a Bearish momentum to continue up to 72.95-72.80 levels and 73.08-73.15 levels will hold as resistance.

Source : Equity Bulls

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