Rupee - Sep 28, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee extended losses for a 3rd straight session on Tuesday against the dollar, following further upside in long-term U.S. Treasury yields and soaring crude oil prices.

The Rupee ended at 74.04 compared with 73.84 in the previous session.

The unit had briefly weakened to an intraday and 1-month low of 74.12 earlier in the session but recouped some losses on dollar sales by exporters.

EM's and most Asian currencies also weakened this Tuesday, while weakness in the local equities also rubbed on the local unit.

The Sensex and the Nifty ended solidly lower this Tuesday, both down by over 0.6%.

Technically, the USDINR Spot pair has settled above 74.00 level. Immediate resistance for the pair is at 74.10 and a sustained trade above the level will push the pair to 74.30 levels. Support for the pair is at 73.84 and 73.66 levels.

In the overseas markets, the U.S. Dollar Index rose this afternoon trade in Asia tracking the rising bond yields.

U.S. Treasury yields have moved higher after three Fed officials yesterday solidified expectations that the U.S. central bank will begin reducing the pace of bond purchases at the November meeting.

Technically, the Dollar Index could see sideways to marginal upside momentum where it holds a resistance zone at $93.72-$93.99 levels where support is at $93.40-$93.10 levels.

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Source : Equity Bulls

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