Rupee - June 22, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S Dollar on Tuesday extending from Monday's losses as the dollar index continued its climb ahead of the Federal Reserve chairman's testimony before lawmakers tonight.

The Rupee ended at 74.37 compared with 74.10 in the previous session. It fell to a near two-month low of 74.39 earlier in the session likely on importers dollar demand.

The U.S. dollar was trading in the green this on Tuesday afternoon trade in Asia, while U.S. Benchmark Treasury Yields softened on Tuesday afternoon trade in Asia.

Meanwhile, in written remarks prepared by Powell said that although inflation had increased, it will move back toward the Fed's 2% target once supply imbalances are resolved.

Investors now await the hearing to get clues on the pace of U.S. economic recovery from COVID-19 and the outlook for the Fed monetary policy.

Regional currencies were weak, while softer crude oil prices capped further depreciation.

Technically, if the USDINR Spot pair sustains above 74.30 level we could witness the bullish momentum will continue up to 74.45-74.70 levels. Otherwise, we could the pair move back to supports at 74.10-74.00 levels.

Technically, the Dollar Index above $92.00 will continue its bullish momentum up to $92.50-$92.60 levels. Support is at $91.90-$91.77 levels.

Source : Equity Bulls

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