Rupee - May 27, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated for the second straight session against the dollar, tracking gains in the Chinese Yuan.

The Reserve Bank of India (RBI) also remained away from the spot market from accumulating dollars also aided the Rupee's gain.

One of the reasons why the RBI has not been very active in accumulating dollars is the higher tha budgeted dividend of 991.22 billion rupees ($13.6 billion) to the federal government.

The Rupee ended at 72.59 compared with 72.77 in the previous session.

Meanwhile, the Yuan, appreciated to its highest level in three years. Most other regional currencies also appreciated in sync and lent support to the domestic unit.

The one-year forward premium was at 3.82 rupees, against 3.85 rupees in the previous session.

The Dollar struggled to hold on to its gains made in yesterday's trade this Thursday afternoon trade.

Investors will continue to monitor how the U.S. Federal Reserve is going to handle the policy on a possibility of rising inflation.

On the data front, investors await U.S. data, including GDP for the first quarter of 2021, initial jobless claims, as well as Core Durable Goods Orders and Pending Home Sales for April, due later in the day.

Source : Equity Bulls

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