Market Commentary

Rupee Wrap - Dec 22, 2022 - Reliance Securities



Posted On : 2021-12-22 18:06:14( TIMEZONE : IST )

Rupee Wrap - Dec 22, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar for the 3rd straight tracking a further recovery in regional equities and currencies as worries over the economic impact of the Omicron mutation of the coronavirus receded.

However, importers' dollar demand capped large gains in the local unit.

The Rupee ended at 75.55 per dollar against 75.60 in the previous session.

The unit had fallen to an intraday low of 75.65 earlier in the session.

Meanwhile, India's benchmark BSE Sensex ended 1.1% higher, extending yesterday's gains and lent support to the currency markets this Wednesday.

Indian government bond yields settled largely unchanged this Wednesday. The benchmark 6.10% bond ended at 6.46%, against 6.47% yield close in the previous session.

Technically, the USDINR Spot pair holds a 21-Daily Moving Average (DMA) which is placed at 75.48 level and it could bounce back up to the resistance zone at 75.66-75.80 levels. a break below 21-DMA could pull the pair to support zone is at 75.40-75.30 levels.

The Dollar Index was flat to lower this Wednesday's trade in the European session ahead of the GDP, consumer confidence and existing home sales data.

The Euro and the Sterling was trading firm this Wednesday afternoon trade.

Technically, if the Dollar Index trades above $96.30 level, it could continue the bullish momentum up to $96.65-$96.80 levels. Support zone is at $96.25-$96.10 levels.

Source : Equity Bulls

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