Rupee Wrap - April 4, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar on Monday to a 5-week high supported by a rally in domestic equity markets.

The domestic equity surged higher with India's benchmark BSE Sensex equity index advancing 2.25% this Monday following the announcement of the merger proposal of two domestic financial giants boosted bets of a reversal in fund outflows from the nation's risk assets.

The Rupee ended at 75.54, the strongest since February 28 and compared with 75.79 close on Thursday last week.

EM and Asian peers were currencies mixed against the dollar.

However, crude oil prices remained extremely volatile this Monday evening in Asian trade as the geopolitical uncertainty from the prolonged conflict in Ukraine persisted.

NDF is at 75.52/75.58 this Monday evening vs a close at 75.88 on Friday.

Indian government bond yields rose on Monday with the benchmark 6.54% ending at 6.90% against 6.84% on Thursday.

Technically, if the USDINR Spot pair trades below 75.59 levels it could pull the pair to the support zone at 75.39-75.23. However, a trade above could push the pair back to the resistance zone at 75.74-75.94.

The Dollar Index and the benchmark bond yields rose this Monday evening in Asian trade amid increased bets of a 50-bps rate hike by the U.S. Fed in month of May.

The Euro, the Sterling and the Yen weakened against the U.S. Dollar this Monday amid fresh talks of sanctions on Russia.

Technically, if Dollar Index trades above $ 98.74 it could witness a bullish momentum up to the resistance zone at $98.96-$99.07. However, a trade below could pull the Index to the support zone at $98.63-$98.41.

Source : Equity Bulls

Keywords

RupeeWrap INR CurrencyUpdate RelianceSecurities