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The rupee (INR), beginning the session at 75.58, looks weak against the dollar (USD) today. If the same trend continues for the rest of the day, the USDINR exchange rate could move to 75.8, which is a support for the rupee. Below that level, 76 can be a good support.
On the other hand, if the local currency takes support at 75.6 and appreciates, it will face resistance at 75.3 and 75.15.
Yesterday, after opening on the front foot, the Indian currency gave up its gains and wrapped up the session at 75.46, without much change, compared to the previous day’s close of 75.5. There was not much activity from Foreign Portfolio Investments (FPI) as well. Though they were net sellers, the net out flow was about ₹283 crore (equity and debt combined).
Dollar index
The dollar index gained marginally yesterday, closing the day at 100.17 versus the previous day’s close of 100. The index remains within the range between 98.8 and 100.9 and while it stays within this range, the upcoming trend will be unclear.
Trade strategy
After opening the session lower, the rupee is now testing support at 75.6. The intra-day price action can be sluggish today; but a break below 75.6 can invite considerable selling interest. Hence, traders can initiate fresh short positions in rupee if it breaches support at 75.6. Stop-loss can be at 75.4.
Supports: 75.6 and 75.8
Resistances: 75.3 and 75.15
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