It was a risky week for the Indian Rupee (INR) within the derivatives section. Broadly, the pattern was blended because the rupee strengthened towards the Euro (EUR) and British Pound (GBP) and weakened towards the US Greenback (USD) and Japanese Yen (JPY). The Euro (EURUSD) and Pound (GBPUSD) tumbling towards the US greenback aided the rupee to strengthen towards them. The GBPUSD tumbled 1.5 per cent final week whereas the EURUSD, which was down sharply by 1.88 per cent intraweek, managed to recoup among the loss to shut the week down by 0.53 per cent.
The EURINR (84.60) and GBPINR (101.15) Futures contracts (March) on the Nationwide Inventory Alternate (NSE) had been down 0.72 and 0.86 per cent respectively. The EURINR has assist at 84, which is prone to maintain and set off a bounce-back transfer in the direction of 85 and 86 within the coming weeks. Equally, assist for GBPINR is within the 100.75-100.50 area from the place recent rise to 102-102.50 may be seen. To sum up, there may be restricted room for the rupee to strengthen additional towards the euro and pound. As such, merchants can take into account shopping for these two pairs on dips.
Towards the US greenback, the USDINR (75.60) Futures contract (March) is broadly ranged between 74.50 and 76. The bias is bearish to interrupt 76 and see an increase to 76.50-77. Recent longs may be thought of on an upside breakout above 76. The outlook for JPYINR (65.52) is barely blended. At present, the cross is oscillating within the vary of 65-66.50. This sideways vary is prone to stay intact for some extra time. A breakout on both aspect of this vary will then decide whether or not JPYINR can go as much as 67-67.50 or fall to 64. Till then, merchants can play the vary by shopping for decrease and promoting increased.
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February 26, 2022