Indian rupee: Good opportunity to go long

Aug 13 2014, 17:32 IST
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SummaryIndian rupee opened weak and made a intraday low of 61.30 due to global dollar strength...

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 today’s 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.

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