Rupee - April 6, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee weakened for the second consecutive session against the U.S. Dollar, weighed down by dollar demand from importers.

Meanwhile, investors also await the MPC decision and RBI's commentary on the economy and inflation.

The Rupee ended at 73.43 compared with 73.29 in the previous session. The local unit had risen to an intraday high of 73.20 earlier in the session on the back of exporters' dollar sales and weaker dollar.

Meanwhile, Asian currencies were mostly higher after the dollar index extended losses this Tuesday's afternoon session.

The one-year forward premium was at 3.57 rupees, against 3.59 rupees in the previous session.

Technically, the USDINR Spot pair has bounced back from 73.20 levels and another breakout above 73.45 will push the pair up to 73.60-73.75 levels. The USDINR Spot pair could trade in a range of 73.25-73.65 levels.

In the international markets, the U.S. dollar rebounded from a near two-week low but still remained on weaker side of things on Tuesday's afternoon trade as investors await the Fed monetary policy meeting minutes on Wednesday.

Technically, the dollar index will hold a support of $92.40-92.15 levels from where could see a bounce back up to $92.85-$93.10 levels.

Source : Equity Bulls

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