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Today, the rupee (INR) has opened with a gain against the dollar (USD), at 75.88 versus 76.1 – its previous close. The local currency has been gaining since the session open and has rallied above the key resistance at 75.7. This opens the door for further strengthening.
On Tuesday, the rupee had gained 0.25 per cent and ended the session at 76.1 after marking an intraday high of 75.93 versus the greenback. So far this calendar year, the rupee has declined about 5.7 per cent. The Foreign Portfolio Investments (FPI) were net sellers on Tuesday even as the market traded with a positive bias yesterday. The net outflow of FPIs yesterday were at ₹1,893 crore.
Dollar index:
The dollar index corrected further yesterday, and it has slipped below the support at 101. If the correction continues, it can drop to the important level of 100. Below that level, 99.4 can act as a support. A softening dollar demand can be favourable for the local currency.
Trade strategy:
The rupee has inched above the resistance at 75.7 and so it will most likely trade with bullish bias for intraday. Traders can buy the rupee on declines with stop-loss at 75.9
Supports: 75.7 and 75.9
Resistances: 75.3 and 75
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