Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee appreciated against the U.S. Dollar on Wednesday supported by dollar inflows related to overseas debt fund raising by corporates. However, further gains were capped amid weak risk appetite in the region.
Additionally, expectations of faster Fed rate increase and stronger crude oil prices also kept appreciation bias limited.
The Rupee ended at 74.43 compared with 74.57 close in the previous session.
Regional currencies were mixed while India's BSE Sensex dropped 1.1%, extending yesterday's decline this Wednesday.
Indian bond yields ended lower amid short covering and likely foreign inflows in bonds. The benchmark 6.10% bond ended at 6.60%, versus 6.63% close in the previous session.
Technically, USDINR Spot pair resisted the 100-Daily Moving Average at 74.60 levels however above 74.25 will continue its bullish momentum up to 74.55-74.70 levels. Support is at 74.40-74.25 levels.
The USDINR Spot pair could trade in a range of 74.30-74.70 levels in coming session.
The U.S. Dollar was flat to weak this early Wednesday morning in European trade, but downside could be limited as the U.S. bond yields is trading higher in anticipation of rising U.S. interest rates.
Technically, if Dollar Index trades above $95.50 level, it will continue its positive momentum up to the resistance zone at $95.74-$96.00 levels. Support zone is at $95.44-$95.10 levels.
The Euro, the Sterling and the safe haven Yen were trading marginally stronger this early Wednesday morning in European trade.