Rupee - July 7, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended weaker for a second straight session on Wednesday against the U.S. Dollar on weak risk appetite due to worries over slowdown in the pace of economic recovery.

The Rupee ended at 74.62 compared with 74.54 in the previous session.

Meanwhile oil and telecom companies continued to buy dollars and pushed the USDINR spot pair briefly to 74.79; however, presence of foreign banks selling dollar capped upside in the pair.

In the overseas markets, the dollar index edged higher on Wednesday afternoon trade in Asia ahead of the Fed's monetary policy meeting minutes scheduled to be released today.

Most Asian currencies were weaker lower against the U.S. Dollar on Wednesday, while crude upside remained intact and also weighed on the Rupee.

Meanwhile, in other news, Fitch Ratings has cut India's real gross domestic product forecast by 280 basis points to 10%, as renewed Covid-19 restrictions have slowed recovery efforts.

Technically, the USDINR spot pair continued to remain above the pivotal support at 74.50 and after tonight's Fed Minutes, if the pair continues to remain above the level, we could witness the pair test 75.10 very soon. However, a break below 74.50 will pull the pair to 74.25 levels, which remains a major support for the currency in the short term.

Source : Equity Bulls

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