Rupee Wrap - April 19, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar on Tuesday after Russian Foreign Minister Sergei Lavrov said that Moscow was starting a new phase of military operations in Ukraine.

The Rupee also tracked the local shares which fell over 1% after the news of fresh Russian military operations.

The Rupee ended at 76.51 this Tuesday vs. a close at 76.26 on Monday.

The local currency weakened to an intraday low as 76.53, the weakest since March 15.

Non-Deliverable Forward (NDF) is currently trading at 76.55/58 vs a close at 76.24 on Monday.

The U.S. Dollar and U.S. benchmark bond yields also strengthened further amid a quick rate hike expectation from the Fed.

Asian and EM peers were weak this Tuesday evening and weighed on sentiments.

India's benchmark bond yield ended flat as traders awaited fresh triggers. The benchmark 6.54% bond ended at 7.15% unchanged.

Technically, the USDINR Spot pair sustains above an important pivot at 76.43 then the pair could test the resistance zone at 76.60-76.70. However, a trade below could pull the pair back to the support zone at 76.33-76.16.

The USDINR Spot pair could trade in a range of 76.60-76.33 levels on Wednesday's session.

The U.S. Dollar has is trading stronger, while the Euro, the Sterling and the Yen were weaker against the Dollar this Tuesday evening in Asian trade.

Technically, the Dollar Index sustains above an important pivot at $100.87 then the greenback could test the resistance zone at $101.04-$101.19. However, a trade below could pull the greenback back to the support zone at $100.71-$100.54.

Additionally, the chart suggests that the markets are overbought and maybe due for a correction.

Source : Equity Bulls

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