Rupee - Dec 8, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended flat against the U.S. currency as likely corporate dollar outflows offset selling interest from exporters and upbeat domestic equities ahead of U.S. CPI number on Friday.

Investors will look ahead to key inflation data that could settle the course of interest rates.

The Rupee ended at 75.45 compared with 75.44 close in the previous session. The local currency had briefly depreciated to an intraday low of 75.56 against the U.S. Dollar.

Asian currencies also appreciated this Wednesday and lent support to the local unit.

Meanwhile, the Reserve Bank of India today maintained the reverse repo rate at 3.35% and the repo rate at 4% for a 9th straight time. The Monetary Policy Committee also decided to continue with its accommodative stance to boost economic recovery.

India's government bond yields dropped on Wednesday after the central bank kept the key rates steady and the policy stance accommodative to support growth.

The benchmark 6.10% ended at 6.35% against a 6.39% close in the previous session.

Technically, the USDINR Spot pair supports are at 75.33-75.22 levels. Resistance for the pair is at 75.48-75.67 levels. Markets could consolidate between the support and resistance zones over the next couple of trading sessions.

The U.S. Dollar has is trading marginally weaker this Wednesday afternoon in early European trade as investors will await the U.S. CPI due this week.

Technically, if the U.S. Dollar Index resistance zone is at $96.25-$96.41 levels. Support zone is at $96.09-$95.86 levels. Markets could consolidate between the support and resistance zones over the next couple of trading sessions.

The Euro and the Yen was stronger while the Sterling gave up gains against the U.S. Dollar this Wednesday afternoon in early European trade after new Covid-19 rules could come in to place this week.

Source : Equity Bulls

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