Rupee - Oct 18, 2021 - Outlook - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated on Friday, but for the week the it ended weak for the 4th straight week against the U.S. dollar on the back of a consistent rise in crude oil prices that prompted concerns of higher inflation.

The Rupee ended at 75.26 to a dollar compared with 75.37 in the previous session.

For the week, it depreciated 0.4%, adding to the 2% drop in the last three weeks.

In the overseas markets, the dollar index remained range bound, but settled weaker and below the 94.00 level.

The dollar ended its five-week winning streak, as global risk appetite rebounded, helping reduce demand for the safe-haven currency.

U.S. retail sales data was also upbeat on Friday and pushed investors out of safe havens like the dollar.

The Indian Rupee could open stronger this Monday morning against the dollar, tracking a fall in the greenback.

The Rupee could open around 75.00-75.05 in initial trades compared with 75.26 in the previous session.

However, crude continues to remain firm and will limit further appreciation.

NDF is at 75.01/02 this Monday morning vs. a close of 74.94 on Friday.

Most of the EM and Asian currencies have started slightly weaker against the Dollar and could keep appreciation bias capped of the local unit.

Technically, the USDINR Spot pair supports are 75.00 and 74.90 and resistances are 75.30 and 75.67.

The U.S. Dollar has started higher this Monday morning in Asian trade.

On the charts, the Dollar Index resistances are at $94.10 and $94.27. Supports are at $93.77 and $93.67.

The Euro and the Sterling have started flat to marginally weaker against the dollar this Monday morning in Asian trade.

The Yen has started marginally stronger against the Greenback this Monday morning.

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Source : Equity Bulls

Keywords

Rupee INR RelianceSecurities