Rupee to dollar: Technical indicators point towards weakness

Updated: Sep 3 2014, 23:01pm hrs
Indian rupee opened firm at 60.63 due to firm equity market sentiment, however firm US dollar movement and weak Asian currencies led rupee to make a intraday low of 60.69

However fresh dollar sales by banks ,exporters and traders after the news of cease fire steps have been agreed between Ukraine & Russia and firm equity market led rupee to make a intraday high of 60.33.

However dollar demand at lower levels led rupee to pare some of its intraday gains. Rupee closed at 60.4850 firmer by 0.32%.

Rupee is trading in a range between 60.30 & 60.70. However technical indicators on short term are pointing towards weakness and as far level of 60.38/40 holds on closing basis we can expect rupee to weaken towards 60.70 & 60.90 levels in near term.

By Hemal Doshi, Geojit Comtrade Ltd.