Rupee - June 23, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the dollar, as U.S Federal Reserve Chairman Jerome Powell continue to remain dovish and downplayed inflationary concerns and put to rest fears of an early rate hike.

The Rupee ended at 74.27 compared with 74.37 in the previous session. The Rupee had strengthened to an intraday high of 74.18, but trimmed gains on dollar bids by oil marketing companies.

The Dollar index will drive the momentum in the rupee in the coming sessions.

The movement of the dollar index will depend on the data in the next couple of session with GDP and PCE Index data on Friday.

The dollar index was little changed at 91.74 this Wednesday afternoon trade, while the U.S. 10-year yield was just under 1.50%.

Meanwhile, India's BSE Sensex was however down 0.5%. Moody's Investors Service today slashed India's growth projection to 9.6% for 2021, from its earlier estimate of 13.9% and warned that the second Covid wave in the country could adversely impact some infrastructure sectors.

Technically, the USDINR Spot pair did not sustain above 74.40 levels, however, the pair held above the support at 74.15 levels below and only a close below the levels could see a downside move up to 74.00-73.88 levels. However, a breakout above 74.40 could see a bullish momentum up to 74.60-74.75 levels.

In the overseas markets, the Dollar Index will hold a support near $91.55-$91.30 levels. Resistance is at $92.00-$92.30 levels.

Source : Equity Bulls

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