Rupee - July 22, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the dollar this Thursday as risk sentiment improved in the region amid hopes that the recent surge in coronavirus infections may not have a major impact on the global economic recovery.

Additionally, markets could also be factoring in that the Fed and other central banks could continue to lend support to the economy fearing the recent surge of covid-19 infections.

The Rupee ended at 74.46 on Thursday compared with 74.62 on Tuesday.

Regional currencies appreciated anywhere between 0.1% and 0.3% against the dollar this Thursday and also lent support.

Technically, the USDINR Spot pair has bounced back from 74.30 levels and above 21-Daily Moving Average at 74.50 levels will continue to push the pair to 74.65-75.80 levels. Support is at 74.40-74.25 levels.

The Dollar Index was flat this Thursday afternoon trade in Asia, while the Euro and other currencies were flat this Thursday afternoon trade in Asia ahead of the European Central Bank's policy review today.

The ECB is expected to maintain a dovish tone and outline how its new inflation goal affects the monetary policy outlook.

Technically, the Dollar Index is trading on a positive note where breakout above $92.85 level could see $93.00-$93.33 levels. Support is at $92.60-$92.50 levels.

Source : Equity Bulls

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