Market Commentary

Rupee Wrap - May 6, 2022 - Reliance Securities

Posted On : 2022-05-07 11:25:53( TIMEZONE : IST )

Rupee Wrap - May 6, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee tumbled against the U.S. Dollar on Friday and depreciated this week as risk appetite weakened amid mounting concerns about inflation that may trigger more aggressive rate hikes by the global central banks.

The Rupee ended at 76.92 on Friday its weakest close since March 7 after testing an intraday low of 76.97 and compared with 76.26 close on Thursday.

However, dollar sales by state-run banks, suspected on behalf of the central bank capped further weakness.

The Rupee weakened by 0.6% this week, after gaining about 0.1% last week.

India's BSE Sensex share index declined 1.6%, Asian and EM currencies were broadly weaker and crude prices is trading up by over 2% this Friday afternoon and weighed on the local unit.

NDF is currently trading at 76.85/90 this Friday afternoon vs. a close at 76.45 on Thursday.

Monday's range for the USDINR Spot pair is 76.26-77.27.

Indian bond yields settled higher on Friday and spiked this week after RBI unexpectedly kicked off its rate hike cycle to curb inflationary pressures.

The benchmark 6.54% bond ended at 7.45% against 7.40% close on Thursday.

The U.S. Dollar came off session highs this Friday afternoon in Asian trade ahead of closely watched U.S. jobs report that's likely to back the case for aggressive monetary policy tightening.

The Euro and the Sterling are trading with gains against the dollar this Friday afternoon in Asian trade.

Rest of the session range for the Dollar Index is $102.37-$104.08.

Source : Equity Bulls


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