Rupee - May 28, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated for the fifth straight week against the U.S. Dollar tracking gains in the Chinese Yuan and due to the continued absence of the Reserve Bank of India in the spot market.

The Rupee ended at 72.44 compared with 72.59 in the previous session.

The Rupee strengthened to a two-month high of 72.32 earlier in the day.

For the week, it gained 0.5%, adding to an aggregate rise of nearly 3% in the last four weeks.

The Yuan was up 1% this week to 6.3619 to the dollar, its highest level in three years, logging its best weekly performance this year and largely come on the back of PBOC's willingness to letting the currency appreciate.

The Rupee was further aided by the positive risk mood in Asia.

The one-year forward premium was at 3.82 rupees, unchanged against previous session.

Technically, USDINR Spot has bounced back from 72.30 levels but only breakout above 72.50 could see a bullish momentum up to 72.65-72.80 levels. Support is at 72.30-72.12 levels.

The U.S. dollar strengthened further on Friday afternoon trade in Asia as investors waited for U.S. inflation data to set the currency's direction.

Technically, the Dollar Index has bounced back from its multiple support zones near $89.80-$89.98 level where it could see $90.23-$90.47 levels. Breakdown below $89.90could see a Bearish momentum up to $89.68-89.40 levels.

Source : Equity Bulls

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