Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated against the U.S. Dollar on Tuesday weighed down by a rise in global oil and weak domestic equities.
The Rupee ended at 74.57 its weakest since Dec. 29, as compared with 74.24 close in the previous session.
Higher oil prices will re-stoke inflation risks and concerns about high trade deficits in the country.
Meanwhile, most of the Asian peers ended weaker on Tuesday while most of the EM peers are trading weaker Tuesday and weighed on the local unit.
Indian government bond yields settled largely unchanged on Tuesday with the benchmark 6.10% bond ending at 6.63%, versus 6.64% close in the previous session.
Technically, if the USDINR Spot pair trades above 74.59 which is its 100-Daily Moving Average, it could witness a bullish momentum up to 74.77-74.98 levels. Support zone is at 74.40-74.20 levels.
The USDINR Spot pair could trade in a range of 74.40-74.80 levels in today's session.
The U.S. Dollar is trading marginally stronger this early Tuesday morning in European trade tracking the strength of the U.S. benchmark bond yields.
Technically, if Dollar Index continues to trade above 100-Daily Moving Average at $95.00 levels it could continue its bullish momentum up to resistance zone is at $95.44-$95.80 levels. Support zone is at $94.70-$94.50 levels.
The Euro, the Sterling and safe haven Yen were trading marginally weaker this early Tuesday morning in European trade.