The rupee (INR), after losing 16 paise against the dollar (USD) on Wednesday, began the session with gap-down. It opened at 73.21 versus yesterday’s close of 73.03. The local currency has now slipped below the support of 73.15. If it declines further, the nearest support levels are at 73.4 and 73.5. But if the rupee bulls make a comeback and push it upwards of the resistance at 73.15, the subsequent hurdle can be the important level of 73.

Foreign Portfolio Investors (FPI) seemto be positive on the Indian market as they bought considerable amount of domestic assets yesterday. The net fund flow yesterday was positive at ₹990 crore (equity and debt combined). FPI activities have been positive for the rupee in the recent past, and this can be expected to continue at least in the near-term. This can help INR to stay firm against USD.

Dollar index

The dollar index appreciated yesterday and closed at 92.68 versus previous close of 92.34. Today, it has been positive so far and is now trading around 92.9 – its 21-day moving average. If the index can rally past this level, it can be expected to advance to 94, which is a critical resistance. A breakout this level can turn the outlook positive. But if it loses momentum and declines, it can find support at 92.5 and 92.15.

Trade strategy

The rupee opened today’s session with a gap-down and it has gone below the support of 73.15. Also, the dollar looks positive today. Hence, traders can short the rupee with a tight stop-loss for intraday as the price action indicates a possible rupee depreciation.

Supports: 73.4 and 73.5

Resistances: 73.15 and 73

Related Topics