Market Commentary

Rupee Wrap - Jan 13, 2022 - Reliance Securities

Posted On : 2022-01-13 20:35:06( TIMEZONE : IST )

Rupee Wrap - Jan 13, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated marginally against the dollar on Thursday and ended over 3-month high tracking a broad dollar decline.

However, expectations that the country's central bank is unlikely to allow the local unit to appreciate from current levels capped gains.

The Rupee ended at 73.88 its strongest since September 27, versus 73.91close in the previous session.

Meanwhile, the Asian peers were broadly stronger against the dollar index tracking broad weakness in the greenback over the last 2 trading sessions, while stronger domestic equities also aided sentiments.

Meanwhile, Indian bond yields ended lower on Thursday with the benchmark 6.10% bond ending at 6.56% compared with a yield of 6.59% yesterday.

Technically, the USDINR Spot pair has bounced back from its lower band of Rising Channel formation at 73.76 levels and could move towards the resistance zone at 73.99-74.15 levels. Support zone at 73.65-73.60 levels.

The U.S. Dollar is flat to marginally lower this early Thursday morning in European trade after U.S. inflation proved weaker than feared in December, prompting investors to cut long positions in the currency.

Investors will now look cues from jobless claims and PPI data from the U.S.

Technically, if Dollar Index trades below $95.00 levels, it could witness a Bearish momentum up to the support zone at $94.80-$94.55 levels. Resistance zone is at $95.21-$95.46 levels.

The Euro, the Sterling and safe haven Yen is trading stronger against the U.S Dollar this Thursday.

Source : Equity Bulls


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