Market Commentary

Rupee - Dec 2, 2021 - Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

Posted On : 2021-12-03 00:35:02( TIMEZONE : IST )

The Indian Rupee depreciated against the dollar this Thursday weighed down by Omicron uncertainties on the global economic recovery and a hawkish U.S. Federal Reserve.

The Rupee ended at 74.9950 per dollar compared with 74.9050 in the previous session.

The unit had briefly weakened to an intraday low of 75.08 but may have trimmed losses on dollar sales.

Meanwhile most Asian currencies were weak, while strong crude oil and a recovery of the dollar also weighed on the local unit.

India bond yields ended unchanged this Thursday with the benchmark 6.10% bond ending at 6.35%.

Technically, the USDINR Spot pair ended below 75.00 levels and another sustained trade below could pull the pair to the support zone at 74.85-74.70. A sustained trade above could push the pair to the resistance zone is at 75.15-75.25 levels.

The U.S. Dollar was flat this Thursday in early European trade ahead of jobless claims data tonight and nonfarm payroll data tomorrow, while investors waited for clues on the threat posed by the Omicron coronavirus variant.

Technically, if the Dollar index trades above $96.00 levels, it will continue its bullish momentum up to $96.35-$96.45 levels. A sustained trade below could pull the index to the support zone at $95.80-$95.75 levels.

The Euro and the Sterling has started flat to marginally stronger this Thursday early European trade, while the yen continue to depreciate against the dollar amid safe haven appeal for the currency.

Source : Equity Bulls


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