Rupee Wrap - March 14, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee reversed early weakness to end stronger in a volatile trading session helped by a surge in local domestic equities.

Additionally, likely dollar sales by foreign banks on behalf of exporters helped the rupee this Monday.

The Rupee ended at 76.56 compared with 76.59 on Friday.

Earlier in the session the local unit weakened tracking Asian peers, ahead of the Federal Reserve's widely expected rate increase this week.

Meanwhile, investors will look to cues from domestic inflation data due later today where it is expected to show retail inflation in India likely eased to 5.93% in February, from 6.01% in January.

NDF is at 76.47/57 this Monday evening vs. a close at 76.48 on Friday.

Indian bond yields ended marginally lower in a volatile session as oil prices eased, as traders awaited retail inflation data for February. The benchmark 6.54% bond ended at 6.85%, against 6.86% yield on Friday.

Technically, if the USDINR spot pair continues to trade below 76.70 levels, it could continue its downside momentum up to the support zone at 76.48-76.35. A trade above could push the pair back to the resistance zone at 76.70-76.97.

The USDINR Spot pair could trade in a range of 76.40-76.70 levels in the coming session.

The U.S. Dollar slipped as European trading session on Monday as investors braced for a busy week of major central bank meetings.

Most of the non-dollar currencies were stronger on Monday.

Technically, if Dollar Index trades below $98.80 levels, it could witness a bearish momentum up to the support zone at $98.50-$98.26. A trade above could push the pair back to the resistance zone at $98.95-$99.10.

Source : Equity Bulls

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