Views on Rupee - Dec 16, 2021 - Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. dollar this Thursday aided by broad dollar decline despite a relatively hawkish Federal Reserve.

Dollar sales by a large engineering and construction conglomerate also helped the local unit this Thursday.

The Rupee ended at 76.09 against 76.23 close in the previous session. The local currency had briefly depreciated to an intraday low of 76.31 earlier in the session.

Rumours of Reserve Bank of India presence at 76.30 to prevent volatility in the exchange rate may have also aided sentiments.

Asian currencies were flat-to-higher while India's benchmark BSE Sensex added 0.2% and lent support.

Indian government bond yields ended flat this Thursday. The benchmark 6.10% bond ended at 6.37%, compared with 6.36% close in the previous session.

Technically, the USDINR Spot pair support is at 76.00-75.88 levels, while resistance is at 76.25-76.44 levels.

In the overseas markets, the U.S. Dollar was flat to lower, while U.S. Treasury yields inched lower this Thursday early morning in European session.

The Euro and the Sterling edged higher this Thursday early morning in European session ahead of Bank of England and European Central Bank monetary policy meetings.

Technically, if the Dollar Index sustains above $96.20 level, it will continue its bullish momentum up to $96.50-$96.90 levels. Support is at $96.05-$95.90 levels.

Source : Equity Bulls

Keywords

Currency Rupee INR RelianceSecurities