Rupee - Jan 27, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended flat against the U.S. currency, as rumoured dollar purchases likely for the central bank, offset the impact of foreign banks greenback sales and was selling pressure on the dollar in the spot market.

The Rupee ended at 72.92 compared with 72.94 in the previous session. The unit had opened at 72.91, but had appreciated to a near-five-month high of 72.78 earlier in the session.

Meanwhile, the markets will await the outcome of the Federal Reserve's meeting, due today. The U.S. central bank is expected to maintain status quo on policy rates and repeat its dovish stance and provide further guidance on its bond buyback plan.

Asian currencies were mostly weaker this Wednesday. The dollar index rose this Wednesday ahead of the outcome from the Fed meeting.

The one-year forward premium was at 3.57 rupees against 3.62 rupees in the previous session.

Technically, the USDINR Spot pair has traded on a negative note below 73.00 levels, which indicates a Bearish momentum to continue up to 72.85-72.60 levels. Resistance is at 72.98-73.10 levels.

Source : Equity Bulls

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