Market Commentary

Rupee - Oct 4, 2021 - Reliance Securities



Posted On : 2021-10-04 22:04:15( TIMEZONE : IST )

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the dollar on Monday, as the offshore Chinese yuan weakened amid prospects of a broader spill over from the troubles at cash-strapped China Evergrande Group.

The Rupee ended at 74.31 to a dollar compared with 74.12 in the previous session.

Evergrande missed its offshore dollar coupon payments and has triggered some weakness in the offshore Chinese yuan.

Broadly, the risk sentiment was weaker in the region and weighed on sentiments.

Technically, the UDINR spot pair has settled above an important resistance at 74.28 and another sustained above the level will push the pair to 74.55 levels. However, a trade below could pull the pair to the important support at 74.05 levels.

Meanwhile, in the overseas markets, the dollar index was marginally weaker against the basket of currencies as investors await the U.S. monthly jobs report, due this week which will help traders assess the likelihood of the Fed making a taper announcement at the next month's meeting.

Technically, the dollar index is trading below an important resistance at $94.08 and another sustained below the level will pull the index to $93.81 levels. However, a trade above could push the index to $94.50 levels.

The Indian Rupee depreciated against the dollar on Monday, as the offshore Chinese yuan weakened amid prospects of a broader spill over from the troubles at cash-strapped China Evergrande Group.

The Rupee ended at 74.31 to a dollar compared with 74.12 in the previous session.

Evergrande missed its offshore dollar coupon payments and has triggered some weakness in the offshore Chinese yuan.

Broadly, the risk sentiment was weaker in the region and weighed on sentiments.

Technically, the UDINR spot pair has settled above an important resistance at 74.28 and another sustained above the level will push the pair to 74.55 levels. However, a trade below could pull the pair to the important support at 74.05 levels.

Meanwhile, in the overseas markets, the dollar index was marginally weaker against the basket of currencies as investors await the U.S. monthly jobs report, due this week which will help traders assess the likelihood of the Fed making a taper announcement at the next month's meeting.

Technically, the dollar index is trading below an important resistance at $94.08 and another sustained below the level will pull the index to $93.81 levels. However, a trade above could push the index to $94.50 levels.

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Source : Equity Bulls

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