Rupee - March 2, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated for the first time in 4 sessions against the U.S. currency, supported by local equities amid improved risk appetite.

The Rupee ended at 73.36 to the dollar against 73.54 in the previous session.

The local currency had risen to an intraday low of 73.48 earlier in the session, on importers' dollar demand.

Asian currencies were weaker against the U.S. Dollar this Tuesday, tracking the strength of the Greenback and capped appreciation bias.

Meanwhile, India's trade deficit was at $12.88 billion in February, narrowing from $14.54 billion in January but wider than $10.16 billion a year earlier, preliminary data showed.

The one-year forward premium was at 3.60 rupees unchanged against previous session.

Technically, the USDINR Spot pair traded in a range 73.31-73.53 levels indicating sideways momentum. Support is at 73.12-73.00 level. Resistance is at 73.55-73.75 levels.

In the international markets, the Dollar index was trading higher this Tuesday afternoon trade, while the Euro and Sterling continued to struggle against the Dollar this Tuesday afternoon.

On the calendar front, we have U.S. Beige book release this week, along with non-farm payrolls.

Apart from the data, markets could also look to cues from Fed Chairman Jerome Powell speech where he is expected to discuss the economy and debate on a $1.9 trillion stimulus package will begin in the Senate later in the week.

Source : Equity Bulls

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