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.