Comments
The rupee (INR) opened Thursday’s session lower at 75.8 versus its previous close of 75.59 against the dollar (USD). The local currency has thus slipped below support at 75.6, opening the door for more weakening.
On the downside, immediate support can be spotted at 75.8, below which the support is at 76. But if the rupee strengthens and moves above 75.6, it might appreciate to 75.3. Above that level, resistance is at 75.15.
Yesterday, the rupee closed flat even as Foreign Portfolio Investors (FPI) were net sellers. The net outflow stood at nearly Rs 920 crore (equity and debt combined).
Dollar index
Extending the downtrend, the dollar index declined yesterday and closed at 96.17 versus its previous close of 96.46. In today’s session, the index bounced off the support at 96. If the support holds, it might appreciate towards the nearest hurdle at 97.
Trade strategy
The Indian currency began the session below support at 75.6; while the rupee stays below that level, it can be bearish. So, traders can initiate rupee short positions on intra-day rallies, with stop-loss at 75.6.
Supports: 75.8 and 76
Resistances: 75.6 and 75.3
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.