Rupee Wrap - June 7, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee weakened for a 4th straight session against the dollar amid rising price pressure and the steps taken by the central banks to curb price pressures reduced appetite.

The Rupee ended at 77.71/dollar compared with 77.63/dollar close on Monday.

The Rupee briefly tested 77.73 in early trades, its weakest since May 19.

However, dollar sales by state-run banks, suspected on behalf of the Reserve Bank of India capped losses.

Markets may have also been helped by easing oil prices, but Asian currencies and equities were broadly weaker and kept appreciation capped.

Investors will look to cues from the RBI's Monetary Policy Committee's scheduled rate decision announcement on Wednesday.

However, lack of any major triggers in the markets kept the currency in a narrow 4 to 5 paisa trading band this Tuesday.

NDF is currently trading at 77.75/80 this Tuesday afternoon vs. a close at 77.75 on Monday.

Wednesday's range for the USDINR pair is 77.59-77.83.

Indian bond yields rose for a 4th straight session as traders braced for an anticipated hike in the key policy rate on Wednesday.

The benchmark 6.54% bond ended at 7.52%, its highest since March 19, 2019 and against 7.50% close on Monday.

The U.S. Dollar Index is trading marginally higher on Tuesday afternoon in Asian trade.

Rest of the session range for the Dollar Index is $102.25-$103.00.

The Yen, the Euro and the Sterling remained weak on Tuesday afternoon trade.

Source : Equity Bulls

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