Rupee Wrap - March 3, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated for a 3rd straight day against the dollar as crude oil prices surged to their highest levels in 10 years, heightening worries about domestic inflation and wider trade deficits.

The Rupee ended at 75.91, the weakest since December 17, against 75.70 close in the previous session.

Rumours of RBI's presence capped further depreciation this Thursday.

Asian and EM peers were also trading weaker on Thursday evening, tracking a rebound in the greenback and risk-off tone in the market.

NDF is at 75.95/76.10 this evening morning vs a close at 75.53 on Wednesday.

Indian government bond yields settled higher for the 3rd straight session weighed down by the continuous rally in crude oil prices.

The benchmark 6.54% bond ended at 6.83%, its highest since February 4, against 6.81% close in the previous session.

Technically, the USDINR spot pair has ended above 75.80 and a sustained trade above could push the pair to the resistance zone at 76.10-76.25. A trade below could pull the pair to the support zone at 75.80-75.65 levels.

The USDINR Spot pair could trade in a range of 75.75-76.10 levels in the coming session.

The U.S. Dollar is trading stronger this Thursday evening in Asian trade as Ukraine conflict intensifies and pushed investors to safe haven appeal of the greenback.

The Euro and the Sterling were weaker this Thursday evening in Asian trade against the dollar as Russia's invasion of Ukraine could hurt European growth.

The Yen was weaker this early Thursday evening.

Technically, Dollar Index is trading above an important pivot at $97.50 and a sustained trade above could push the Index to the resistance zone at $97.75-$98.05. A trade below could pull the Index to the support zone at $97.20-$96.95.

Source : Equity Bulls

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