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Market Commentary
Rupee Wrap - April 21, 2022 - Reliance Securities
Posted On : 2022-04-21 18:04:10( TIMEZONE : IST )
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee appreciated against the U.S. Dollar this Thursday as local shares surged on speculation LIC IPO will launched soon which could potentially boost overseas funds into local assets.
The Rupee ended at 76.15 a dollar compared with 76.21 close on Wednesday.
The local currency touched as high as 76.09 this Thursday, its strongest level since April 12.
Asian and EM peers were mixed, after easing in early trade, however gains were capped amid Dollar purchases by crude refiners.
Furthermore, gains were also likely capped as the U.S. benchmark bond yield moved higher this Thursday afternoon trade ahead of Fed Powell speech tonight.
However, the dollar index was weaker this Thursday afternoon trade and lent support.
NDF is currently trading at 76.10/15 vs. a close at 76.23 on Wednesday.
Technically, the USDINR Spot pair closed below 76.20 level and now could test the support zone at 76.04-75.93. However, a trade back above could push the pair back to the resistance zone at 76.31-76.47.
The USDINR Spot pair could trade in a range of 76.04-76.31 levels in coming session.
Indian government bond yields ended higher as traders continued to book profits ahead of a weekly debt auction as well as minutes of the latest policy meeting due tomorrow.
The benchmark 6.54% bond ended at 7.14%, against 7.11% close on Wednesday.
The U.S. Dollar is trading weaker this Thursday evening in Asian trade ahead of Fed Powell speech tonight.
The Euro is trading marginally stronger against the Dollar this Thursday evening in Asian trade as investors await speeches from BoE Governor Bailey and ECB President Lagarde tonight.
The Sterling and the Yen is trading marginally weaker against the Dollar this Thursday evening in Asian trade.
Inflation data from Euro zone and jobless claims data from the U.S. could also have impact on the markets.
Technically, the Dollar Index sustains below an important pivot at $100.15 then the greenback could retest the support zone at $ 99.70-$99.35. However, a trade back above could push the greenback back to the resistance zone at $100.50-$100.95.
