Rupee Wrap - Feb 21, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar for the 4th session in amid dollar sales on optimism about a resolution to the Ukraine issue and in anticipation of inflows.

The Rupee ended at 74.51 compared with 74.66 on Friday.

The local unit hit an intraday high 74.35 during the day.

Meanwhile, the Asian currencies appreciated against the U.S. Dollar after the U.S. and Russia had agreed in principle to hold a summit to discuss security and strategic stability in Europe.

Additionally, foreign banks were on the selling side for the pair, as they may have been receiving inflows ahead of the initial share sale plan of the nation's largest insurer, LIC.

ndian government bond yields ended higher on Monday. The benchmark 6.54% bond ended 6.69%, versus 6.66% on Friday.

Technically, the USDINR Spot pair has given a breakdown below 50-Daily Moving Average at 74.74 levels and sustained trade below continue to pull the pair up to the support zone at 74.40-74.22 levels. Resistance zone is at 74.85-75.00 levels.

The USDINR Spot pair could trade in a range of 74.40-74.88 levels in this Monday's session.

The U.S. Dollar Index is flat to weaker this Monday evening in Asian trade.

U.S. is shut today on account of President's Day holiday, so volumes will remain low.

Technically, Dollar Index is trading below 21 and 50-Daily Moving Average at $95.99 levels and sustained trade below continue to pull the Index up to the support zone at $95.64-$95.17 levels. Resistance zone is at $95.99-$96.18 levels.

The Euro, the Sterling and safe haven Yen were stronger against the greenback this Monday evening, tracking a fall in the dollar.

Source : Equity Bulls

Keywords

RupeeWrap INR RelianceSecurities CurrencyUpdate