Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated against the U.S. Dollar weighed down by a continuous selloff in local equities and broad dollar gains.
Investors remained cautious after new cases of the Omicron variant were detected across India, leading to dollar outflows.
Additionally, weak equity markets and strong crude oil prices also weighed on the local unit this Wednesday.
The Rupee ended at 75.42 after briefly depreciating to an intraday low of 75.45 to the dollar against 75.16 in the previous session.
Indian government bond yields ended flat ahead of monetary policy decision due this week. The benchmark 6.10% bond ended at 6.36%, unchanged from Friday.
A Reuters poll of economists showed the Reserve Bank of India would likely hold its benchmark interest rate at 4.00% and the reverse repo rate at 3.35%.
Technically, the USDINR Spot pair has given a breakout above 75.35 level and a sustained trade above the level will push the pair to 75.56-75.68 levels. Support is at 75.30-75.10 levels.
In the overseas markets, the dollar index was marginally higher this early European trading session.
Technically, if the U.S. Dollar Index sustains above $96.00 level, it will continue its bullish momentum up to $96.35-$96.59 levels. Support is at $95.98-$95.80 levels.