Rupee might appreciate today
Tue Nov 24 2020
The rupee (INR) ended marginally higher at 74.09 against the dollar
(USD) on Monday. In today’s session, after opening flat, it has been inching up
and has moved above the important level of 74. Further appreciation can take
the local currency to 73.85 and then possibly to 73.7 – a resistance level. But
if INR weakens, it can find support at 74.3. Subsequent support is at 74.5.
The positive trend in the foreign inflows continue for the current
month. On Monday, the Foreign Portfolio Investors (FPI) have made net
investments of ₹4,738 crore. This has been a positive factor for the
local currency and consistent inflows can help the rupee gain against the
dollar.
Dollar index
The dollar index witnessed a volatile session yesterday. While it
decline in the first half of the session, the index recovered in the latter
half and rallied sharply ending the day with a minor gain. It registered an
intraday high of 92.8 before ending the session at 92.5. For the past few
trading sessions the index has been trading sideways between 92 and 92.75 and
unless either of these levels are taken out, the next leg of trend cannot be
confirmed.
Trade strategy
The rupee has opened on the front foot and it has rallied above the
important level of 74. The price action looks positive and the local currency
is likely to advance in today’s session. So, traders can be positive and buy
INR with stop-loss at 74.1.
Supports: 74 and 74.3
Resistances: 73.85 and 73.7
Source:
www.thehindubusinessline.com
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