Indian rupee may rise towards 68-69 if the pair closes above 63 on Friday, Citi said in its report on technicals.
Pair may touch 69.60 in 6-7 weeks due to a “bullish break” in the market, Citi said.
Sell-off in Indian equities after large dollar inflows in last 12 months could lead to foreign money flowing out, which in turn could put additional pressure on the rupee.
Previous two bullish breaks in the rupee were followed by a 11 pct rally over 6 weeks and 11.25 pct over 7 weeks, according to Citi’s technical call.
Indian shares showing signs of caution and a break below 8,025-8,270 for the NSE index could lead to losses of over 20 pct.
Rupee ended at 63.32/33, its lowest level since Jan. 6 on Thursday.