Rupee - Dec 7, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee reversed intraday gains and ended flat against the dollar on Tuesday as strong dollar bids offset large outflows.

According to media reports, India needs to pay around $1 billion to Cairn India, and the outflow is expected over the next few days.

The Rupee ended at 75.44 to the dollar compared to 75.42 in the previous session.

The local unit briefly appreciated to an intraday high to 75.27 earlier, tracking gains in the Asian currencies and China's moves to support its economy after the People's Bank of China cut the required reserve ratio by 50 basis points.

India's benchmark BSE Sensex ended 1.6% higher and lent support.

However, the local unit but gave up all its gains to test an intraday low 75.50 amid continued selling of Indian equities by foreign investors.

Technically, the USDINR Spot pair close above 75.35 levels and a another close above the level will push the pair to 75.53-75.68 levels. Support is at 75.26-75.15 levels.

The U.S. Dollar is trading higher on Tuesday afternoon in early European trade.

Technically, if the U.S. Dollar Index is currently trading marginally below an important hurdle at $96.40 level but a trade above will push the Index up to $96.64-$96.70 levels. Support is at $96.23-$96.06 levels.

The Euro is flat to weaker, while the Sterling and the Yen is flat this Tuesday afternoon trade.

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Source : Equity Bulls

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