Rupee Wrap - Jan 6, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar this Thursday tracking losses in regional currencies and equities after the minutes of the U.S. Federal Reserve's latest policy meeting indicated an early interest rate lift-off to counter inflation risks.

The Rupee ended at 74.49 compared with 74.36 close in the previous session.

Asian equities and currencies dropped this Thursday following the release of the minutes.

Now the futures on the federal funds rate were pricing in a nearly-80% chance of a quarter-percentage point hike by the central bank at its March meeting.

Meanwhile, a recovery of the crude oil prices from lows of morning's trade also weighed on sentiments.

Brent oil was trading closer to $82.00 level early Asian evening trade on Thursday in Asia.

Indian government bond yields settled higher, with the benchmark 6.10% bond ending 6.53% compared with 6.51%, close in the previous session.

Technically, if the USDINR Spot trades above an important pivot at 74.60 levels it could push the pair to 75.05-75.20 levels. A trade below could pull the pair back to the support zone at 74.23-74.05 levels.

The U.S. Dollar was flat in early Asian evening trade on Thursday; however downside will be capped lifted by stronger in U.S. Treasury yields on rising bets for a Federal Reserve rate hike by the U.S. Federal Reserve.

Investors will look to cues from jobless claims, Factory Orders and ISM Non-Manufacturing PMI number from the U.S.

Technically, the Dollar Index range for the day is $96.45 to 95.90.

The Euro and the Sterling was flat to weaker, while the safe haven Yen was flat to stronger this Thursday evening trade.

Source : Equity Bulls

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