Indian rupee opened firm at 60.40 and then made an intraday high of 60.36 due to weak dollar movement in overseas market, firm Asian currencies & equity market sentiments.
Dollar demand from corporates, covering of short dollar position and escalation in geo political tension between Russia and Ukraine led rupee to pare all of its intraday gains and make a low of 60.70. However fresh dollar selling by banks and exporters in last hour led rupee to pare most of its intraday losses. Rupee closed at 60.4950 weaker by 0.07%.
Technically on short term chart rupee is into overbought zone and critical level of 60.38/40 again held today which indicates that rupee is expected to weaken further towards 60.90 levels in the near term.
By Hemal Doshi, Geojit Comtrade Ltd.