Market Commentary

Rupee - Oct 18, 2021 - Outlook - Reliance Securities



Posted On : 2021-10-18 11:49:00( TIMEZONE : IST )

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.

Disclaimer: The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through RSL nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security(ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of RSL shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information / opinions / views contained herein.

Source : Equity Bulls

Keywords

Rupee INR RelianceSecurities