Rupee Wrap - Dec 28, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar for a 7th straight session as dollar sales by foreign banks on behalf of exporters and receding concerns over the impact of the Omicron coronavirus strain aided risk sentiment.

The Rupee ended at 74.6500, its strongest against the dollar since November 26 from 74.9950 close in the previous session.

The Rupee has gained 1.9% in the last seven sessions.

Additionally, renewed buying in global equities in holiday-thinned trading has also aided domestic markets.

Tuesday's strength in the local unit may have also come amid inflows from external commercial borrowings.

Most Asian peers were weak, but Asian stock markets across the globe rallied. And lent support.

Indian bond yields rose, on Tuesday with the benchmark 6.10% bond ending at 6.49%, the highest since April 13, 2020, against 6.46% close in the previous session.

Technically, the USDINR Spot pair has closed below a major support at 74.78 and a sustained trade below the zone will pull the pair to initially to 74.55 and eventually to 74.43. Resistance zone is at 74.78-75.02 levels.

NDF is strong this Tuesday afternoon trade at 74.68/70 vs. a close at 74.78 on Monday.

The U.S Dollar is trading flat to weaker this Tuesday afternoon in Asian trade, while the Euro, the Sterling and the Yen was flat against the U.S. Dollar this Tuesday afternoon.

Technically, the Dollar Index support zone remains at $95.93-$95.66 levels. Resistance zone remains at $96.30-$96.55 levels.

Source : Equity Bulls

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