Rupee - Sep 29, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated for a fourth successive session against the dollar, as a surge in long-term U.S. Treasury yields deepened fears about outflows from the country's equity and debt markets.

The Rupee ended at 74.15, compared with 74.04 in the previous session.

The unit had briefly weakened to 74.26 earlier in the session, the lowest since August 26, but pared some losses on exporter covering and rumours of RBI's presence in the market.

Risk appetite in the region remained weak as most Asian currencies ended weaker this Wednesday pressurised by a selloff in the U.S. bond market.

Weakness of the local equity markets also rubbed off on the currency. The benchmark BSE Sensex ended 0.4% lower extending from Tuesday's fall 1% fall.

Technically, the USDINR Spot pair above the 74.00 level which will continue to push the local unit to 74.30 levels. Support is 73.88-73.75 levels.

In the overseas markets, the dollar index continued to move higher against rival currencies supported by safe have appeal for greenback even as Washington argued over the U.S. debt ceiling which threatened to push the government into a shutdown.

The Euro and the Sterling were weaker against the dollar, while the safe haven Yen was marginally firm this Wednesday afternoon trade.

Technically, the Dollar Index could see sideways to marginal upside momentum where it holds a resistance zone at $93.90-$94.15 levels where support is at $93.70-$93.55 levels.

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Source : Equity Bulls

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