Rupee - Feb 23, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee marginally appreciated this Tuesday against the U.S. currency on speculative dollar sales and exporter covering.

The Rupee ended at 72.46 compared with 72.51 in the previous session. The local unit had risen to 72.31 earlier in the session, but trimmed gains on probably on the back RBI's intervention in the markets.

The Rupee was also helped by the dollar index falling to 89.94, its lowest level in over one month. However, after the initial weakness, the Index rose back above 90.00 in the Tuesday's afternoon trade tracking gains of the U.S.10-year benchmark yields.

Markets could look to cues from the Federal Reserve Chairman Jerome Powell testimony before the Congress tonight.

The one-year forward premium was at 3.57 rupees against 3.82 rupees in the previous session.

The USDINR February futures contract has reversed early losses and is now trading higher this Tuesday afternoon trade. Earlier in the morning trade, the contract made an intraday low of 72.33.

Technically, the USDINR Spot pair closed above 72.30 level and now a breakout above 72.48 levels could further push the pair to 72.63-72.77 levels. Support remains at 72.25-72.10 levels.

Source : Equity Bulls

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