Rupee Wrap - March 15, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee early reversed gains to end weaker amid talks of dollar buying by domestic crude refiners supported by reports of disruption in a key Russian west-bound gas supply route, which again raised risks of global crude prices strengthening.

The Rupee ended at 76.61 on Tuesday compared with 76.56 close on Monday.

Initially, the local unit touched an intraday high of 76.32, tracking the fall of crude oil and the dollar.

In fact, Brent and WTI still remain under pressure this Tuesday evening trade in Asia amid hopes for progress toward a diplomatic end to Russia-Ukraine crisis.

Reuters reported that Russian gas supply for Europe via the Yamal-Europe pipeline was halted this Tuesday.

Additionally, the local unit also tracked the fall in local equity markets. India's benchmark BSE Sensex fell about 1.4%.

NDF is at 76.49/76.55 this Tuesday evening vs a close at 76.46 on Monday.

Indian bond yields eased as a further retreat in crude oil prices cheered investor sentiments. The benchmark 6.54% bond ended at 6.82%, against of 6.85% close on Monday.

Technically, the USDINR spot pair has bounced back from its multiple support at 76.30 level and could witness a sideways momentum within 76.30-76.80.

The U.S. Dollar has is trading weaker this Tuesday evening in Asian trade as traders await the outcome from this week's Fed meeting.

The Fed is widely expected to raise rates by 25 basis point, while investors also await the future guidance on the rates.

The Euro, the Sterling and the Yen were marginally stronger this Tuesday evening.

Technically, if Dollar Index trades below $98.80 it could witness a downside momentum up to the support zone at $98.70-$98.55. A trade above could continue to push the Index to the resistance zone at $99.00-$99.22.

Source : Equity Bulls

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