Indian rupee opened weak at 60.50 and then made an intraday low of 60.55 due to firm dollar movement in overseas market, weak Asian currencies & geo political tension.
However dollar sales from banks and exporters, firm equity market sentiments helped rupee to recoup all of its intraday losses and make a high of 60.42. However inability to breach the critical level of 60.38/40, weak European equity markets again led rupee to come under pressure and close near days low. Rupee closed at 60.5250 weaker by 0.05%.
Technically on short term chart rupee is into overbought zone and level of 60.38/40 again held today which still indicates that rupee is expected to weaken further towards 60.90 levels in the near term.
By Hemal Doshi, Geojit Comtrade Ltd.