Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated on Friday as foreign banks continued to cover their dollar short positions.
The Rupee ended at 74.15 this Friday down from 73.88 yesterday.
However, the Rupee appreciated for a 4th straight week against the U.S. currency, tracking gains in most regional currencies amid a persistent drop in the dollar index.
The Rupee was also helped by corporate dollar sales, carry trade related selling, fund flows and rumours of intervention from the Reserve Bank of India.
Meanwhile, the Asian currencies were stronger this week and helped the local unit.
So, for the week, the unit rose 0.2%, adding to the 2.4% rise in the last three weeks.
However, gains were capped as crude oil prices is headed for a 4th successive weekly rise.
Technically, if the USDINR Spot pair trades above 74.00 levels, it could witness a bullish momentum up to the resistance zone at 74.22-74.50 levels. Support zone at 74.00-73.88 levels.
The USDINR Spot pair could trade in a range of 73.90-74.35 levels in coming session.
The U.S. Dollar was flat this early Friday morning in European trade as investors will look to cues from U.S. retail sales data tonight.
However, for the week, the U.S. Dollar is headed for losses as investors took the view that most of the recent hawkishness from the U.S. central bank has already been priced in.
Technically, Dollar Index could witness a bounce back from its 100-Daily Moving Average at $94.70 levels. Resistance zone is at $94.88-$96.00 levels.
The Euro, the Sterling and the safe haven Yen are trading stronger against the U.S Dollar this early Friday in European trade.