Market Commentary

Views on Rupee - Nov 26, 2021 - Reliance Securities

Posted On : 2021-11-26 21:59:58( TIMEZONE : IST )

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated on Friday and was weaker against the U.S. Dollar this week as worries resurfaced around a new Covid-19 strain and speculation that the Federal Reserve may hasten its monetary tightening to cool rising prices.

The Rupee ended at 74.87 per dollar after touching an intraday low of 74.93, compared with 74.51 in its previous session.

The Rupee weakened by 0.9% this week.

A rise in Covid cases in Europe and a new variant, detected in South Africa and Botswana, has prompted Britain to introduce travel restrictions on South Africa as worries resurfaced about lockdowns to contain the virus spread.

Asian currencies declined this week, with the Thai baht, the Korean won and the Malaysian ringgit down between 0.7% and 1.4%.

Domestic equities also fell this week as foreign investors have pulled out $2.3 billion from Indian equities in just four sessions this week and weighed on the local unit which was reasonably resilient compared to its peers.

Technically, the USDINR Spot pair breakout above 74.80 and now could witness a bullish momentum up to 75.05-75.20 levels. Support is at 74.75-74.60 levels.

The U.S Dollar also took a breather this Friday afternoon trade in Asia.

Technically, the Dollar Index will continue its bullish momentum above $96.50 level up to $96.85-$96.99 levels. Support is at $96.38-$96.15 levels.

Source : Equity Bulls


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