Rupee - April 23, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. dollar this Friday and this week, as a continuous surge in coronavirus cases raised fears of continued economic pain and foreign equity outflows.

However, dollar sales likely by the Reserve Bank of India, along with exporter covering capped large-scale losses in the domestic unit.

The Rupee ended at 75.01, compared with 74.95 in the previous session. For the week, it fell 0.9%.

There is an added fear of downgrades from rating agencies due to the rise in Covid-19 cases has also weighed on sentiments.

Asian equities and currencies rose, while the dollar index was down this Friday afternoon trade and capped weakness of the local unit.

The one-year forward premium was at 3.56 rupees, against 3.51 rupees in the previous session.

Technically, the USDINR Spot pair has bounced back from 74.75 levels and above 75.00 could see an upside move up to 75.12-75.35 levels. Support is at 74.85-74.70 levels.

The USDINR pair Spot could trade in a range of 74.85-75.30 levels in coming session.

In the overseas markets, the dollar index was trading weaker weighed down by the stronger Euro which moved higher after European Central Bank President Christine Lagarde squashed speculation that policymakers will start to consider a tapering of bond purchases.

Technically, the Dollar Index is trading and below the 50-Daily Moving Average at $91.65 which will continue to pull the index lower up to $90.85.

Source : Equity Bulls

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