Rupee Wrap - June 3, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee ended marginally weaker on Friday and were off session lows amid importer's dollar-buying.

The Rupee ended at 77.62/dollar compared with 77.61/dollar close on Thursday.

The unit rose to 77.47/dollar earlier today as softer U.S. data raised speculation about the U.S. Fed toning down its hawkish position on the interest rates in the coming months.

However, for the week the Rupee depreciated marginally amid the probability of more aggressive rate hikes by central banks to curb the impact of inflation.

Meanwhile, Asian and EM peers were mixed with China and U.K. investors remaining away from the markets on account of local holidays, volumes were muted.

However, investors focus will shift to the RBI's MPC meeting next week. As of now investors are expecting a 25-bps rate hike next week.

NDF is currently trading at 77.61/62 this Friday afternoon vs. a close at 77.30 on Thursday.

Monday's range for the USDINR pair is 77.50-77.70.

Indian bond yields rose on Friday and ended higher for this week amid anticipation of a substantial repo rate hike by India's MPC next week.

The benchmark 6.54% bond ended at 7.46% against 7.43% close on Thursday.

The U.S. Dollar Index is flat this Friday afternoon in Asian trade as traders looked to U.S. jobs data later in the day.

The Euro, the Sterling and the Yen are trading marginally weaker against the Greenback this Friday afternoon trade.

Rest of the session range for the Dollar Index remains between $101.15-$102.40.

Source : Equity Bulls

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