Rupee Wrap - March 17, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated on Thursday and gained for the week posting its biggest weekly gain in nearly 3 months against the dollar, as appetite for Asian risk assets surged after the rate hike and hawkish guidance by the U.S. Federal Reserve was in line.

The Rupee ended at 75.80 a dollar compared with 76.27 close on Wednesday.

The local currency strengthened by 1% this week.

Indian financial markets will be shut tomorrow for a local holiday for the Holi festival.

India's BSE Sensex gained around 1.84%, while the Asian currencies and equities gained this Thursday and helped the local unit.

NDF is at 75.76/75.81 this Thursday evening vs a close at 75.98 on Wednesday.

Indian bond yields fell on Friday and were stronger for the week as crude oil prices cooled off this week.

The benchmark 6.54% bond ended at 6.78% on Friday vs a close at 6.79% on Wednesday.

Technically, the USDINR spot pair support zone is at 75.73-75.56, while the resistance zone is at 75.98-76.12 level.

The U.S. Dollar is weaker this Thursday evening in Asian trade as the Federal Reserve's monetary policy decisions failed to affect the market as the bar for a hawkish surprise was high.

Technically, if Dollar Index trades below $98.50 it could witness a downside momentum up to the support zone at $98.13-$97.90. A trade above could continue to push the Index to the resistance zone at $98.76-$99.00.

Source : Equity Bulls

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