Rupee - Feb 3, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended flat against the dollar, ahead of the MPC decision on Friday.

Meanwhile the Rupee remained in a narrow trading band amid expectations that RBI could absorb portfolio flows and keep the local unit in a narrow range.

The Rupee ended at 72.96, unchanged against the previous session. The unit traded in a narrow 6-paise band in today's session.

Some support came in the form of positive ending in the domestic equity markets supported by foreign portfolio inflows.

Meanwhile, most Asian currencies were weak this Wednesday as the U.S Dollar Index remains steady ahead of key data.

Important data due tonight is the ISM non-manufacturing numbers and the monthly jobs report on Friday.

The one-year forward premium was at 3.63 rupees against 3.60 rupees in the previous session.

Technically, the USDINR Spot pair traded in a narrow range and was unable to sustain above the 73.00 level. At the same time, there is a strong support at 72.80 level indicating a sideways momentum to continue within range of 72.80-73.00 levels. Resistance for the pair is at 73.20.

Source : Equity Bulls

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