Rupee Wrap - April 20, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee appreciated against the U.S. Dollar on Wednesday tracking gains in the local equities and a fall in the dollar and U.S. bond yields.

The Rupee ended about 0.4% higher at 76.21 from 76.51 close on Tuesday yesterday.

Most major equity markets in Asia, except China and Hong Kong, rose, while regional currencies were mixed against the U.S. dollar.

The Dollar and U.S. bond yields fell this Wednesday evening in Asian trade as most investors await the final public statement from the Fed Chair Jerome Powell tomorrow.

Traders will closely watch for any hints regarding future monetary policy.

NDF is currently trading at 76.15/21 this Wednesday evening vs. a close at76.41 on Tuesday.

Technically, the USDINR Spot pair did not sustain above 76.70 level where 76.15-76.00 hold a support & 76.38-76.55 will act as resistance.

The USDINR Spot pair could trade in a range of 76.00-76.50 levels in coming session.

Indian bond yields ended lower on short-covering by traders. The benchmark 6.54% bond ended at 7.11%, against 7.15%, yesterday.

The U.S. Dollar has is trading weaker, while the Euro, the Sterling and the Yen rebounded against the Dollar this Wednesday evening in Asian trade as await speeches from Jerome Powell and Christine Lagarde tomorrow.

Technically, if the Dollar Index trades below $100.60 level it could see downside momentum up to $100.08-$99.92 levels. Resistance is at $100.40-$100.62 levels.

Source : Equity Bulls

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