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BL Research Bureau
Today, the rupee (INR) has opened lower at 75.81 compared to Tuesday’s close of 75.63 against the dollar (USD). The local currency has slipped back below the key level of 75.7, and further decline can drag it to 76. On the other hand, if the rupee appreciates above 75.7, it can rally to 75.4 and 75.2
Yesterday, the net inflow of Foreign Portfolio Investments (FPI) was about ₹741 crore contributing to the demand for the rupee. Going ahead, the rupee can appreciate if FPI continues to pump in money.
Dollar index:
The dollar index declined yesterday and is currently hovering around an important level of 100. At this level lies the 21-day moving average. The index could bounce from here on the back of the support. On the upside, the nearest resistance is at 101. A rally from here could weigh on the rupee.
Trade strategy:
The downward pressure on rupee seems to be waning, and if it moves above 75.7, the domestic currency can be bullish throughout the day. Hence, for intraday, traders can go long in the rupee with stop-loss at 75.9 if it rallies above 75.7
Supports: 76 and 76.3
Resistances: 75.7 and 75.4
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