Indian rupee opened weak and made a intraday low of 61.30 due to global dollar strength, dollar demand and weak equity markets. Disappointing data of India CPI & IIP were also seen putting pressure on rupee.
However rupee recovered some of its intraday losses and made a high of 61.2075 as traders created fresh long position in rupee due to a reversal in equity markets, stable Asian currencies and receding threat of geo political risk. It closed at 61.2150 weaker by 0.22%.
Technically todayís rupee close above yesterday low of 61.22 and negative divergence on daily charts indicates that the current weakness is temporary and it should be seen as a good opportunity to go long on Indian rupee for a target of 60.50/60.
By Hemal Doshi, Geojit Comtrade Ltd.