Market Commentary

Rupee - Nov 30, 2021 - Reliance Securities

Posted On : 2021-11-30 21:55:51( TIMEZONE : IST )

The Indian Rupee depreciated against the U.S. dollar on Tuesday in a volatile trading session after Moderna CEO warned that existing COVID-19 vaccines would be less effective against the Omicron variant.

The Rupee has been under pressure over the last 2 or 3 trading sessions as the detection of a new coronavirus variant re-ignited growth concerns and hurt risk appetite.

The Rupee ended at 75.16 per dollar, compared with 75.10 close in the previous session.

The local unit had briefly appreciated to an intraday high at 74.86 tracking the weakness of the dollar and easing crude oil prices.

However, most of the Asian and EM currencies were weak this Tuesday and kept appreciating bias capped.

Investors will look to cues from GDP, Fiscal Deficit and infrastructure output data aftermarket hours.

Indian bond yields ended flat on Tuesday with the benchmark 6.10% bond ending at 6.33% as compared with 6.34% close in the previous session.

Technically, the USDINR Spot pair has given a breakout above 75.10 level and a sustained trade above the level a could push the pair up to 75.20-75.35 levels. Support is at 75.00-74.83 levels.

The USDINR Spot pair could trade in a range of 75.00-75.30 levels in coming session.

In the overseas markets the dollar index tumbled this late in Asia and early European session on Tuesday after money markets pushed back their expectation of a first, full 25 basis-point rate hike to September 2022, versus July last week.

The 10-year U.S. benchmark yield also tumbled this late in Asia and early European session on Tuesday below the 1.5% level ahead of Fed Chairman's testimony tonight.

Technically, the Dollar Index has given a breakdown below $95.80 levels and further trade below could witness a bearish momentum up to $95.50-$95.35 levels. Resistance is at $95.88-$96.00 levels.

Source : Equity Bulls


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