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BL Research Bureau
The rupee (INR) has opened today’s session lower against the dollar (USD). The local currency has opened at 76.30 versus yesterday’s close of 76.07, and thus it has come off the resistance band between 75.9 and 76. If the rupee depreciates from the current level, it can take support at 76.6 and 76.85.
On Thursday, the Indian currency performed well as it gained nearly 0.8 per cent against the greenback. It rallied and closed at 76.07 after registering an intraday high of 75.98. The Foreign Portfolio Investments (FPI) activity was not so significant yesterday. The net outflow of FPI was a meagre ₹114 crore (equity and debt combined).
Dollar index:
The dollar index is sluggish as it continues to trade around 100.5. Currently trading at 100.6, the index has marginally moved above the upper boundary of the range 99.7 – 100.5. If it can sustain above that level, the index might rally to 101.
Trade strategy:
Though the domestic currency has begun today’s session with a loss, it has strong support at 76.3, and until it remains above that level, the chances for recovery is higher. Hence, traders can make use of the decline to go long in the rupee. Place a tight stop-loss as a break below 76.3 can result in a sharp fall in the rupee.
Supports: 76.3 and 76.6
Resistances: 76 and 75.9
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