Rupee Outlook - April 12, 2022 - Reliance Securities

The Indian Rupee depreciated this Monday as crude refiners stepped up dollar purchases ahead of U.S. inflation data this week.

Most of the Asian and EM peers also remained under pressure ahead of the U.S. CPI data and weighed on sentiments.

The Rupee ended at 75.95 compared with 75.90 close on Friday.

Briefly we witnessed the local currency dropping to a low of 76.09, its weakest level since March 29.

India's benchmark BSE Sensex share index fell 0.8%, however the benchmark Brent crude prices remained under pressure this Monday and capped further depreciation of the local unit.

Indian government bond yields rose for a 2nd consecutive session as suggestions of withdrawal of accommodation by RBI's MPC panel coupled with the persistent rise in U.S. Treasury rates dampened investor sentiment.

The benchmark 6.54% bond ended at 7.15%, the highest since May 28, 2019, against Friday's close of 7.12%.

FPI sold net $120.68 million as on 08 April 2022. For the month of April till date, FPI are net buyers of a total of $244.83 million.

The U.S. Dollar Index rose against the basket of currencies on Monday, still supported by higher U.S. Treasury yields.

The Euro rebounded from the session lows after French leader Emmanuel Macron beat far-right challenger Marine Le Pen in the first round of presidential voting.

The Sterling and the Yen weakened while against the dollar on Monday.

EM's were marginally stronger, while Asian peers ended weak on Monday.

For the monthly April 2022 USDINR options, the most active Put strikes are 74.00, 75.00, 75.50, 76.00 and 76.50 and the most active Call strikes are 76.00, 76.50 and 77.00.

For the 13 April 2022 weekly expiry USDINR options, the most active Put strikes are 75.50, 75.75, 76.00 and 76.25 and the most active Call strikes are 75.75, 76.00, 76.25, 76.50 and 76.75.

Source : Equity Bulls

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