Rupee - May 18, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated this Tuesday against the U.S. dollar tracking the broad dollar weakness, upbeat risk appetite and strong local equities.

Moreover, the Reserve Bank of India's absence in the spot market also led to exit of dollar longs.

The Rupee ended at 73.05 against 73.21 in the previous session. The unit had risen to a near two-month high of 72.95 earlier in the session.

Meanwhile the South Korean won led regional currencies higher against the greenback and provided added support.

The one-year forward premium was at 3.86 rupees, against 3.84 rupees in the previous session.

Technically, the USDINR Spot pair holds resistances at 73.20 and 73.35. Supports are at 72.90 and 72.70.

In the overseas markets, the Dollar Index was traded near multi-month lows vs. the basket of currencies on Tuesday afternoon trade amid renewed expectations the United States will not hike interest rates anytime soon.

Rest of the non-dollar currencies were stronger on Tuesday afternoon trade.

Technically, the Dollar Index has given a breakdown below of its multiple support zones near $90.14-$89.98 levels and now could test $89.68-$89.32 levels in short term.

Source : Equity Bulls

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