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Market Commentary
Rupee Wrap - March 7, 2022 - Reliance Securities
Posted On : 2022-03-07 17:52:26( TIMEZONE : IST )
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee tumbled on Monday's trade against the U.S. Dollar after talks of ban on Russian oil import pushed oil prices to multi year highs, amplifying fears of rising inflation and wider trade deficits.
However, RBI may have present to help curb volatility this Monday's trade.
The Rupee ended 76.96 per dollar after testing an all-time low of 76.97 hit earlier in the session and compared with 76.16 close on Friday.
Talks of exporter hedging at the weakest levels also capped further depreciation.
Most of the EM and Asian peers depreciated and along with weakness in the Asian, European equity markets and U.S. Futures weighed on the local unit this Monday.
The Russian Ruble tumbled against the U.S. Dollar by 14% this Monday.
NDF is trading at 77.11/12 this Monday afternoon trade vs a close at 76.42.
India bond yields jumped on Monday as an extended rally in oil prices made investors nervous about the country's inflation outlook.
The benchmark 6.54% bond ended at 6.89%, its highest since June 26, 2019 and against 6.81% close on Friday.
Technically, the USDINR spot pair has reached uncharted territory where if sustain above 76.90 levels it could witness an upside momentum up to the resistance zone at 77.30-77.54 levels. A trade below could pull the pair back to the support zone at 76.80-76.65 levels.
The USDINR Spot pair could trade in a range of 76.65-77.30 levels in the coming session.
The U.S. Dollar is trading stronger this Monday morning in European trade as investors continued to move towards the safe-haven assets.
The Euro and the Sterling tumbled this Monday morning in European trade, while the Yen also trading weak in late Asian trade.
Technically, if Dollar Index continues to remain above $99.00 level it could continue its bullish momentum up to $99.50-$99.66 levels. A trade below could pull the pair back to the support zone at $98.90-$98.78 levels.
