Rupee is into overbought zone

Updated: Aug 27 2014, 23:49pm hrs
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.