Forex

Daily Rupee call: INR likely to appreciate

Yoganand D BL Research Bureau | Updated on December 29, 2020

The USDINR started the session on a flat note at 73.49 to the previous close of 73.49. The rupee had appreciated to 73.3 against the dollar and the day's range is 73.49 and 73.30. The local currency is witnessing buying interest at lower levels and is likely to appreciate in today's sessions. But, the key resistance at 73.30 is limiting the currency. A decisive rally above this level can take the rupee higher to 73.15 and then to 73. That said if the currency weakens and slips below the current support level of 73.50, can drag the currency down to 73.70. Subsequent support for the domestic currency is placed at 73.85 levels.

Dollar index

The US Dollar currency index, commonly known as the Dollar index started the session on weak note, opening at 90.20 against the previous close of 90.33 levels. It is in the range of 90.08 and 90.22 in today's session. The index has slipped 0.2 per cent so far and likely to test support at 90. a decisive fall below this base can drag the index lower to 89.80 and then to 89.50 levels. Resistances above 90.5 are at 90.7 and 91 levels.

Trade strategy

The rupee has started the session on front foot and is likely to appreciate backed by weakness in the dollar index. So traders can go long on dips with a stop-loss at 73.5.

Supports: 73.50 and 73.70

Resistances: 73.15 and 73.0

Published on December 29, 2020

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