Rupee - Feb 22, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar on Monday to its highest level in a year aided by corporate dollar inflows as well as reduced intervention from the central bank.

The Rupee ended at 72.51 to the dollar against 72.65 in the previous session. The currency gained to an intraday high of 72.29 to the dollar earlier in the day, its highest level since Mar. 3, 2020.

The inflows are attributed to raising of dollar-denominated funds by state-run companies like NTPC and REC, while PFC recently raised funds via dollar bonds.

The one-year forward premium was at 3.82 rupees against 3.72 rupees in the previous session.

The U.S. dollar pared losses in late afternoon Asian trading tracking gains of U.S. benchmark yields.

Most of the non-dollar currencies were stronger against the U.S. Dollar in late afternoon Asian trading this Monday.

Most of the Asian currencies were weaker this Monday afternoon trade.

Technically, the USDINR Spot pair ended on a negative note. However, the pair has bounced back from 72.27 and if the pair breaches 72.50 we could see some upside move upto 72.65-72.80 levels. Support is at 72.30-72.10 levels.

Source : Equity Bulls

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