Rupee - May 19, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated for the first time in four sessions against the U.S. Dollar this Wednesday, weighed down by importers' dollar demand and a weak regional risk appetite.

The Rupee ended at 73.17 compared with 73.05 in the previous session.

The domestic unit had risen to 72.94 earlier in the session supported by inflows; however weaker shares kept appreciation bias limited.

Asian currencies weakened, while equities declined this Wednesday ahead of the Fed's April minutes and also weighed on the local unit.

The one-year forward premium was at 3.93 rupees, against 3.88 rupees in the previous session.

Technically, the USDINR Spot pair bounced back from 72.92 levels ended on a positive note. Support is at 73.00-72.88 levels. Resistance is at 73.30-73.45 levels.

The Dollar Index recovered from the early losses against major currencies and was trading higher this Wednesday afternoon trade as investors wait for the Fed minutes tonight.

Technically, the Dollar Index has bounced back from $89.68 levels and further it could move towards the resistances at $90.10-$90.25 levels. Support is at $89.70-$89.58 levels.

Source : Equity Bulls

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