Rupee Wrap - April 8, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar on Friday as India's central bank hinted at exiting its easy monetary stance.

The Rupee ended at 75.90 a dollar compared with 75.96 yesterday.

The Reserve Bank of India today rephrased its monetary stance, focusing on withdrawing monetary accommodation, while remaining supportive of growth.

The RBI, in its policy review, left key interest rates unchanged.

However, crude oil prices again rebounded this Friday afternoon session and capped appreciation for the local unit.

On the inflation front for the fiscal year that started April 1, the RBI raised the forecast for the headline consumer-price inflation to 5.7%, from 4.5% earlier.

For the meantime the local unit has ended the week on a weaker note against the dollar tracking a sharp sell-off in U.S. Treasuries amid expectations of aggressive withdrawal of policy support by the Federal Reserve.

The local unit weakened by 0.1% this week.

NDF is at 75.83/89 this Thursday evening vs a close at 75.85 on Thursday.

Technically, the USDINR Spot pair could trade in broad range of 76.10-75.70 in this coming Monday's session.

The U.S. Dollar strengthened towards 100 levels for the first time in nearly two years on Friday evening trade in Asia, supported by the prospect of a more aggressive pace of Federal Reserve interest rate hikes.

The Euro was flat, while the Sterling and the Yen were trading marginally weaker this Friday evening trade.

Technically, the Dollar Index could trade in a broad range of $100.25-$99.70 in this Friday's session.

Source : Equity Bulls

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