Rupee - August 30, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated for a 2nd straight session against the dollar this Monday, supported by dovish statement from the Federal Reserve Chairman Jerome Powell who said that more labour market data was needed before they could begin scaling back bond purchases.

So naturally, this week's jobs number becomes an important data point for the market.

The Rupee ended 73.26 compared with 73.68 in the previous session.

The currency had initially tested an intraday high of 73.22, its highest level since June 15, on sustained dollar sales by foreign banks, but trimmed gains on dollar bids likely for the Reserve Bank of India.

On the charts, the USDINR spot pair has broken and ended below an important support at 73.50 and now could test 73.00 levels. Resistances are at 73.50 and 73.82.

Other Asian and EM currencies are mixed this Monday, tracking the weakness of the greenback.

The dollar index was flat but remains near the 2 week lows this Monday afternoon trade in Asia.

The 10-year Treasury yield was near 1.30%.

On the charts, the dollar index has broken below an important support at $92.70 and now could test $92.45 levels. Resistances are at $92.75 and $92.95.

Source : Equity Bulls

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