Rupee Wrap - April 22, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated on Friday and for a 3rd straight week as aggressive rate hike expectation from the Fed continued to support the dollar and the U.S. bond yields.

The Rupee ended at 76.48 this Friday compared with 76.15 close on Thursday.

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

Traders awaited details on the timing of the initial public offering of the nation's biggest state insurer, touted as the nation's largest-ever, which could provide leads on likely overseas fund flows into local assets.

Investors will also await RBI monetary policy meeting minutes today.

NDF is currently trading at 76.39/44 this Friday evening compared with 76.22 close on Thursday.

Technically, the USDINR Spot pair could trade in a range of 75.92-76.93 levels in coming week, with 76.15-76.20 remaining a crucial pivot zone.

Indian bond yields rose for a second consecutive session but posted their first weekly fall in five weeks amid heavy short covering by traders.

The benchmark 6.54% bond ended at 7.17%, against 7.14%, close on Thursday.

The U.S. Dollar is trading stronger this early Friday evening in Asian trade lifted by strong bond yields amid hawkish Fed Powell comments on rates hike.

The Euro and the Sterling is trading weaker against the Dollar this Friday evening in Asian trade, while the Yen is flat against the Dollar this Friday evening.

Technically, if the Dollar Index sustains and ends above an important pivot at $100.66 then the greenback could test the resistance zone at $101.22-$101.85 next week. However, a trade below could pull the greenback back to the support zone at $100.10-$99.41.

Source : Equity Bulls

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