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The rupee (INR) has opened the session slightly higher, at 75.58 versus Monday’s close of 75.71 against the dollar (USD). The price of 75.6 is a crucial level which can acts as a hindrance for the domestic currency.
Yesterday, the Indian currency lost about 0.8 per cent against the greenback, closing the session at 75.71 after registering an intraday low of 75.81. On the downside, there is a support band between 75.9 and 76. If the rupee breaches these levels, it might depreciate to 76.3. But if the rupee can advance from current levels, the nearest hurdle is 75.6. Resistance above that level is at 75.2
The Foreign Portfolio Investments (FPI) went on to sell domestic assets as the overall market sentiment was weak on Monday. The net outflow of FPI stood at about ₹1,374 crore., weighing on the rupee.
Dollar index
Yesterday, the dollar index went up marginally and closed the session at 99.5 compared to its prior close of 99.08. But the overall trend remains sideways with its boundaries at 98.8 and 100.9. So, the index should breakout of 100.9 to establish an uptrend.
Trade strategy
The rupee has opened slightly higher and as long as it remains above 76, the domestic currency can be inclined towards uptrend. But 75.6 is a considerable resistance. Hence, traders can buy rupee with a tight stop-loss if it rallies past 75.6
Supports: 75.9 and 76
Resistances: 75.2 and 75.6
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