Rupee - Dec 23, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar for a 4th straight session on Thursday as risk appetite improved as concerns over the economic impact of the Omicron variant of the coronavirus eased.

The Rupee ended at 75.24 per dollar its strongest since December 3 and against 75.55 in the previous session.

The currency appreciated by 0.4% this Thursday.

The local unit has gained 1.1% so far this week and is poised for its best weekly performance since Apr. 30.

Interbank selling the USD/INR pair, RBI's presence in the market, absence of importers and aggressive hedging by exporters in anticipation of quarter-end dollar inflows lent support this week.

Most regional and EM currencies appreciated against the U.S. Dollar this Thursday and lent support.

Indian government bond yields ended flat on Thursday. The benchmark 6.10% bond ended at 6.46% unchanged against yesterday.

Technically, the USDINR Spot pair has given a breakdown below its 21-Daily Moving Average at 75.52 level indicating the Bearish trend to continue up to 75.18-75.05 levels. Resistance is at 75.35-75.52 levels.

The USDINR Spot pair could trade in a range of 75.10-75.60 levels in coming session.

In the overseas markets, the dollar index was flat this Thursday afternoon session ahead Personal Consumption Expenditure (PCE) price index due today.

Technically, if the Dollar Index March futures trades below $96.25 level, indicating a Bearish momentum up to $95.97-$95.55 levels. Resistance is at $96.20-$96.45 levels.

The Euro, the Sterling and the safe haven Yen was flat this Thursday afternoon trade.

Source : Equity Bulls

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