Indian rupee opened weak at 60.60 and then made an intraday low of 60.68 due to firm dollar movement in overseas market, weak Asian currencies & choppy equity market sentiment.
Dollar sales from banks and exporters, firm equity market sentiments helped rupee to recoup most of its losses and make a high of 60.52. However dollar demand from corporate and absence of any large dollar inflow due to US holiday yesterday led rupee to come under pressure and make a fresh intraday low of 60.69.Rupee closed near days low at 60.68 weaker by 0.26%.
Technical indicators on short term are pointing towards further weakness in rupee and as far level of 60.38/40 holds we can expect rupee to weaken further towards 60.90 & 61.20 levels in near term.
By Hemal Doshi, Geojit Comtrade Ltd.