Rupee - Daily Wrap - Dec 27, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended the session marginally stronger against the U.S. Dollar in a choppy trading session as foreign banks' dollar sales on behalf of exporters offset earlier greenback purchases by state-run banks.

The Rupee ended at 74.9950 compared with 75.0200 in the previous session. The local unit had briefly depreciated to an intraday low of 75.16.

Positive moves in Indian equity indices and stronger Asian currencies also sentiments this Monday's session.

However, FPI's continued to withdraw capital from Indian equities and bonds and fears of a rapid spread of Omicron spread kept appreciating bias limited.

Indian government bond yields ended largely unchanged in a thinly traded session. The benchmark 6.10% bond ended at 6.46%, unchanged from previous session.

Technically, if the USDINR Spot pair closed below the pivotal 75.00 levels and another trade below could pull the pair to the support zone at 74.75-74.70 levels. However, a trade above could push the pair to the resistance zone at 75.14-75.25 levels.

In the overseas markets, the U.S. Dollar is trading marginally higher this Monday afternoon in Asian trade.

However, trading is likely to remain thin and range-bound this week ahead of the year-end holidays.

The Euro, the Sterling and the Yen was flat this Monday morning.

Technically, the Dollar Index remains below 21-Daily Moving Average at $96.29 level indicating a Bearish momentum will continue up to $95.99-$95.70 levels. Resistance is at $96.35-$96.48 levels.

Source : Equity Bulls

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