Rupee - August 31, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the dollar on Tuesday supported by dollar inflows, absence of the Reserve Bank of India's intervention in the spot market and dovish comments by Federal Reserve Chairman Jerome Powell.

The Rupee ended at 73.00, the highest since Jun. 11, compared with 73.26 in the previous session.

The unit rose 1.9% in August, its biggest gain since May and tracked Asian and EM currencies this month.

The Thai baht rallied 1.9%, while the Malaysian ringgit and Singapore dollar appreciated 1.5% and 0.5% respectively in August.

Meanwhile investors will also look to cues from the India's April-June gross domestic product data which is due post market hours this Tuesday evening.

Technically, the next support zone for the USDINR spot pair is at 72.80-72.75 and a break below the zone will pull the pair to initially 72.55 levels and further break below the support will pull the pair to an important support at 72.30 levels. On the upside, resistances are at 73.25 and 73.45.

The Dollar Index was trading weaker against a basket of currencies on Tuesday afternoon trade in Asia, as investors looked to U.S. jobs figures later this week for clues on stimulus taper timing.

On the charts, the dollar index is near the 50-day moving average at 92.45 and a break below will pull the index to 92.04 level which is the 100-day moving average and remains a major support. On the upside, major resistance now is at 92.80 levels.

Source : Equity Bulls

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