Rupee - Feb 8, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended marginally weak against the U.S. currency, as rumored buying from the Reserve Bank of India and rebound of the U.S. Dollar this Monday outweighed the impact of positive regional cues.

Following the RBI's intervention, the one-year forward premium jumped to 3.70 rupees this Monday, the highest since October 2016, while the implied yield rose to 5.07%, the highest since May 2017.

The Rupee ended at 72.96 compared with 72.92 in the previous session.

The Rupee had initially appreciated to an intraday high of 72.83 earlier in the session supported by FPI flows into the domestic equity.

On the international front, the U.S. Dollar was higher against major currencies on Monday afternoon session in Asia as traders waited for more data on the U.S. economy.

The Euro and the Sterling was marginally higher against the dollar after data showed German industry avoided a contraction in December.

Technically, the USDINR Spot pair took a support around 72.83 level and bounced back moved back above 72.90 levels. However, breakout above 73.00 levels with good volume activity will be awaited for further upside movement upto 73.08-73.15 levels. Support is at 72.83-72.70 level.

Source : Equity Bulls

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