Rupee - March 8, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated for the 3rd straight session against the dollar, weighed down by higher crude oil prices and as U.S. Treasury yields continue to harden this Monday.

The Rupee ended at 73.25 compared with 73.01 in the previous session.

Rising crude oil prices weighed on sentiments amid fears of widening trade deficit.

The U.S. dollar gained tracking a broad rise in Treasury yields this Monday afternoon trade as concerns about rising inflation in the U.S. intensified after the U.S. Senate over the weekend passed President Joe Biden's $1.9 trillion fiscal relief plan.

Meanwhile, most Asian currencies depreciated against the dollar and weighed on sentiments.

The one-year forward premium was at 3.61 rupees against 3.58 rupees in the previous session.

Technically, the USDINR spot pair breached an important level of 73.25 this Monday and a continuation of the upside rally of the Dollar Index could continue to weigh on the currency and could witness test 73.50 resistance quickly.

On the other hand, a break above 73.50 could push the pair to 74.00 levels. Support range is at 72.95-73.00 level. Only a sustained trade below the supports could pull the pair back to 72.50 levels.

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Source : Equity Bulls

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