Rupee - Dec 10, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar on Friday and for the 3rd straight week on bets that high U.S. inflation could prompt a quicker unwinding of bond purchases and earlier than previously expectations of a rate hike by the Federal Reserve.

Additionally, suspected corporate and equity-related dollar outflows also weighed on the local unit.

The Rupee ended at 75.77 per dollar, compared with 75.52 close in the previous session.

Briefly the local unit depreciated to intraday low of 75.85, weakest since June 2020, tracking weakness in regional currencies.

The unit fell 0.8% this week, adding to the 1.3% fall in the last two weeks.

Indian bond yields ended largely unchanged this week. The benchmark 6.10% bond ended at 6.37%, versus a close at 6.35% in the previous session.

Traders now await local IIP and manufacturing data for further triggers.

Technically, the USDINR Spot pair immediate hurdle now is at 75.92 levels and a break above will push the pair to 76.15 and ultimately to 76.50 levels. Supports are at 75.67 and 75.40.

The U.S. Dollar is trading with gains this Friday afternoon trade in European session ahead of key inflation data tonight.

Technically, the U.S. Dollar Index resistances are at $96.60 and $96.95. Supports are at $96.07 and $95.81.

Source : Equity Bulls

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