The recent template of the market has been one of “sell on rally”. The Nifty declined 150 points from the day’s high to close flat with a positive bias. The 50-stock index is facing resistance at its 20-DMA.
Why the rupee is on a slippery wicket
March 01, 2021
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The rupee’s sudden fall on Friday, amounting to 1.4 per cent, took the currency market by surprise.
The Indian currency had been gradually appreciating against the dollar since the beginning of this year, gaining almost one per cent, until February 25. The rupee’s strength was mainly due to the weakness in the dollar and foreign portfolio inflows in the equity market.
But the mayhem in financial markets towards the end of last week has reversed these gains.
While the rupee has been steadily appreciating against the greenback since last April, the performance of the Indian rupee compared to other emerging market currencies is quite weak.