Indian rupee opened weak at 60.48 and then made an intraday low of 60.51 due to firm dollar movement in overseas market, weak asian currencies & choppy equity market sentiments.
However fresh dollar selling by banks & exporter, renewed strength in equity market led rupee to recoup all intraday losses and make a high of 60.39. Rupee closed at 60.45 weaker by 0.02%.
Technically on short term chart rupee is into overbought zone and any further rupee appreciation should be seen as an opportunity to buy dollars against rupee. Level of 60.38 – 40 and as far as these level holds we can expect rupee to weaken towards 60.70/80 levels in the near term.
By Hemal Doshi, Geojit Comtrade Ltd.