Indian rupee opened unchanged at 61.17 today and then made a low of 61.22 as US dollar demand and squaring of long rupee position due to overseas firm dollar movement weighed on rupee.
However rupee recovered its intraday losses and made a high of 61.07 as traders created fresh long rupee position due to firm equity markets, firm Asian currencies and receding geo political risk. It closed at 61.08 firmer by 0.15%. Chk updates: Indian rupee vs US dollar, others
Close above 61.20 for rupee continues and reconfirms that the current weakness is temporary. There is negative divergence on daily charts which also indicates that the current weakness is temporary and any weakness should be seen as a good opportunity to go long on Indian rupee for a target of 60.50/60.
By Hemal Doshi, Geojit Comtrade Ltd.