Rupee Wrap - March 22, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar on Tuesday.

However, depreciation was capped as exporters rushed to sell the U.S. currency after oil prices eased on speculation that talks to end the Ukraine conflict could lead to a breakthrough.

A rebound in local equities, in line with a broader rise in regional shares and dollar inflows for a large public sector company also helped the local unit this Tuesday.

The Rupee ended at 76.18 compared with 76.12 close on Monday.

NDF is at 76.15/20 this Tuesday evening vs a close at 76.25 on Monday.

Indian bond yields ended higher tracking a sharp spike in U.S. Treasury yields, however further upside was capped as oil price eased in the afternoon session.

The benchmark 6.54% bond ended at 6.83%, against 6.78% close on Monday.

Technically, the USDINR Spot ended near 21-Daily Moving Average at 76.14 level and a sustained trade above could push the pair to resistance zone at 76.28-76.55. A trade below however could pull the pair to the support zone at 76.05-75.88.

The U.S. Dollar was stronger on Tuesday evening in Asian trade amid a possibility of 50 basis point rate hikes from the U.S. Fed.

Technically, if Dollar Index trades continues to sustain above $98.50 it could continue its bullish momentum up to the resistance zone at $98.75-$99.00. A trade below could pull the Index back to the support zone at $98.13-$97.90.

Source : Equity Bulls

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