Rupee Wrap - Jan 11, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar for a 3rd straight session on Tuesday to settle at an over 3-month high assisted by gains in regional currencies and fund flows.

The Rupee ended at 73.91, its strongest since September 27, compared with 74.04 in the previous session.

Foreign investors have bought around $395 million of Indian equities so far in January, compared with net outflow of $2.5 billion in November and December.

Furthermore, inflows pertaining to Shriram Transport Finance's $475-million bond issue also aided the local unit this Tuesday.

Meanwhile, stronger Asian and EM peers also had a risk-on rub-off trade on the local unit with the Thai baht leading the Asian currencies stronger this Tuesday.

Technically, the USDINR Spot pair could bounce back from its lower band of Rising Channel formation at 73.80 levels up to the resistance zone at 74.08-74.22 levels. however, a break below could pull the pair to the support zone at 73.605-73.65 levels.

In the overseas markets, the dollar index was trading marginally weaker on early Tuesday morning trade in European session as investors await the Fed Chairman Jerome Powell will appear before the Senate for his confirmation hearing and testimony later today.

More perceptions on the Fed's policy outlook will be evaluated from the U.S. inflation data, due tomorrow.

Technically, if Dollar Index trades below $96.00 level it could witness a Bearish momentum up to $95.80-$95.55 levels. a break above could push the Index to the resistance zone at $96.25-$96.40 levels.

The Euro the Sterling are trading higher this Tuesday morning in European trade ahead of speech from ECB's chief Christine Lagarde tonight.

The Safe Haven Yen was weak against the dollar this late Tuesday evening in Asian trade.

Source : Equity Bulls

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