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The rupee closed marginally higher at 70.84 against the dollar on Tuesday. In today’s session, it opened at 70.88 and looks a tad weaker. It is approaching a key level of 71. Taking a broader view in the chart, the rupee seems to have formed a range between 70.75 and 71.
The US Fed is set to announce its monetary policy later today and, as a result, the currency market might witness higher volatility. The dollar is flat ahead of the meeting, as the USD index is oscillating between 97.35 and 97.7. A single directional movement can be expected post the Fed announcement, and this will have an impact on the domestic currency.
Crude oil, India’s largest import, has seen its price soften over the past few days, and a further correction will support the Indian currency.
From the intra-day perspective, traders would be better off staying on the sidelines, ahead of the US Fed meet.
Supports: 71.2 and 71.4
Resistances: 70.75 and 70.35
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