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The rupee (INR) has begun today’s session on a back foot against the dollar (USD). The local currency opened at 76.89 versus its previous close of 76.83. On the downside, the immediate support will be 77, below which the exchange rate might move to 77.25. But if the rupee rebounds, it might rise to 76.6 and 76.4
Yesterday, the Indian currency declined against the dollar, where it lost about 0.4 per cent and ended the session at 76.83. The declining crude oil price did not provide support for the rupee.
The net outflow of the Foreign Portfolio Investments (FPI) on Tuesday was ₹2,095 crore (equity and debt combined), weighing on the rupee.
Dollar index:
Though the dollar index is trading above 100, the movement has largely been sideways in the past few trading sessions. It is oscillating between 99.7 and 100.5 and unless the index breaks either of these levels, the trend will remain uncertain.
Trade strategy:
Though the rupee looks bearish, it has a support at 77. Hence, traders can initiate fresh short positions in the rupee with stop-loss at 76.8 if it decisively breaks below 77.
Supports: 77 and 77.25
Resistances: 76.6 and 76.4
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