Rupee - June 17, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. dollar this Thursday, tracking a surge in the dollar index after the U.S. Federal Reserve surprised markets by signalling it would raise interest rates and end emergency bond-buying sooner than expected.

The Rupee depreciated to end weak by 1% at 74.08, its weakest in seven weeks, compared with 73.32 in the previous session.

Most other regional currencies came under pressure this Thursday, tracking the strength of the greenback.

Currently the dollar is trading at 91.82 against the basket of currencies this Thursday afternoon trade and possibly could breach 92.00 soon.

Investors will await the jobless claims data due tonight, along with Philly Fed Index from the U.S.

The one-year forward premium was at 3.37 rupees, against 3.46 rupees in the previous session.

Technically the USDINR Spot pair has given a sharp breakout above 74.00 levels indicating a strong bullish trend to continue up to 74.32-74.58 levels. Support is at 73.90-73.70 levels.

In the overseas markets, the Dollar Index has given a breakout above 200-Daily Moving Average at $91.50 levels indicating the bullish momentum to continue up to $92.30-$92.78 levels. Support is at $91.60-$91.35 levels.

Source : Equity Bulls

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