Rupee Wrap - Feb 17, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended flat to marginally weak in a choppy trading session on Thursday.

The Rupee ended at 75.11 against 75.07 in the previous session.

Initially the Rupee started stronger tracking the weakness of the dollar which remained under pressure after investors deemed the Fed minutes as dovish.

Weaker crude oil prices also aided sentiments.

However, a brief appreciation the Rupee gave up all its gains and ended weak amid weak risk appetite amid renewed geopolitical concerns between Ukraine and Russia.

Additionally, Asian currencies were mostly weaker against the dollar on Thursday and weighed on sentiments.

NDF is at 74.85/86 this Thursday evening vs a close at 74.93 in the previous session.

Technically, the USDINR Spot pair closed below the 9 and 21-day EMA and could move towards the 50-day EMA ay 74.76. A closed below the 50-day EMA could pull the pair to the 100-day EMA at 74.65. Resistance for the pair is now at 74.95 and 75.12 for the coming session and only a sustained close above resistance could push the pair higher.

The U.S. Dollar is trading flat this Thursday evening in Asian trade and remained choppy this Thursday's trade.

The dollar took support after a Russian news report of mortar fire in eastern Ukraine rattled market nerves and boosted the appeal of safe haven bets.

However, after Ukraine denied the report the dollar came off the session highs.

Investors will continue to remain nervous till the tensions completely cool-off in Eastern Europe.

The Euro was flat, while the Sterling and the Yen were trading with gains this Thursday evening.

Inventors will look to cues from the jobless claims and Philly Fed Business Index tonight.

Technically, Dollar Index support zone is at $95.65-$95.40. The resistance zone is at $95.95-$96.14.

Source : Equity Bulls

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