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Indian rupee ended higher for the second day of the week - HDFC Securities

* Indian rupee ended higher for the second day of the week as weaker dollar and global inflows continued to support buying. The dollar index fell below 90 mark on Tuesday ahead of US FED chairman Jerome Powell’s testimony. The rupee capped upside as premium on one year dollar/rupee forward traded higher after few major state owned banks purchased greenback in forward on behalf of RBI.

* The Dow and S&P 500 eked out gains in the final hour of trade Tuesday, while the tech-heavy Nasdaq Composite finished modestly lower, after congressional testimony from Federal Reserve Chairman Jerome Powell helped reverse a market selloff tied largely to a sharp rise in bond yields. The Fed boss, during the first of two days of testimony in Washington, vowed to keep monetary policy accommodative, and warned that the U.S. economic recovery remains uneven and far from complete.

* The S&P CoreLogic Case-Shiller home price index showed house prices rose 10% in December. The Conference Board said its index of consumer confidence rose to a three-month high of 91.3 in February from a revised 88.9 in January.

* Shares mostly fell across Asia on Wednesday as investors turned cautious, despite remarks overnight from Federal Reserve Chair Jerome Powell that attempted to ease some worries around higher interest rates and inflation.

USDINR

* USDINR February futures are currently trading in a bearish trend with lower lows lower highs.

* The short term and medium term moving averages are above the current prices levels with 20 DMA being the important resistance at 72.74.

* The momentum oscillators are signalling selling pressure in the pair hence sell on rise strategy should be maintained.

* We expect USDINR to trade lower with support at 72.10 and resistance at 72.61 in near term.

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