Rupee could bounce off 75.6

The rupee (INR) seems to be witnessing some pressure since yesterday’s session, after facing the resistance at 75 against the dollar (USD). Compared to yesterday’s closing price of 75.47, the domestic currency has opened today’s session lower at 75.62.

Notably, 75.6 is a crucial support for the rupee. If it slips below that level, the local currency might attract more selling pressure, possibly dragging it to 75.8 and 76. But if the Indian unit takes support at 75.6 and appreciates, the potential hurdles are at 75.3 and 75.15

The rupee weakened on Wednesday even as the Foreign Portfolio Investors (FPI) were net buyers. Yesterday, the net inflow of FPIs stood at ₹1,851 crore (equity and debt combined). The FPIs have been pumping money into the domestic market since the beginning of this month and should this trend continue, the rupee can post sustainable gains against the greenback.

Dollar index

Extending the downtrend, the dollar index declined yesterday, closing at 97.32 versus the previous closing price of 97.62. It is now trading below the important level of 97.75 and as long as it remains so, the likelihood of further weakening is high. This can have a positive impact on the Indian currency. Currently trading at 97.5, the nearest support levels for the index are at 97.15 and 97.

Trade strategy

Even though the rupee has opened on a weak note, it has a considerable support at 75.6. Until the currency pair cracks this level, the rupee has good chance to bounce from current levels. So, on the back of the support at 75.6, traders can buy the rupee with stop-loss at 75.8. Risk-reward ratio too favours long positions at current levels.

Supports: 75.6 and 75.8

Resistances: 75.3 and 75.15

Published on

June 04, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *