witnessing sharp declines on the last day of the week while closing on a 10-week low."
"The domestic fundamentals continued to dominate the Indian currency trade which defied reacting along with the gains of cable and other emerging market currencies. "The opposition along with ex coalition partners of the government demand for a vote on FDI in retail and also pressured the government for a no confidence motion in parliament.
The political embargo if continues shall witness the INR easing above the 56.00 levels.
"The sheer disappointment in the participation of 2G auction where most of the circles remained unauctioned due to higher prices also dented the rupee performance," he added.
"For the week Importers can create a partial hedge around the 55.00-54.50 levels for their payments and Exporters can use the weakness towards 55.80 - 56.20 levels to initiate short hedge to cover their receipts.
"The crucial levels for INR appreciation are 54.80 levels and for depreciation the 55.80 levels can be closely watched as rise above 55.80 levels shall weaken the pair till 56.20 levels. Strong support is placed at 55.10 levels whereas resistance is pegged at 55.80 - 56.00 levels. Buy in dip to 55.10 with a stop loss below 54.50," he further commented.
RBI fixed the reference rate for US dollar and euro at Rs 55.3445 and Rs 71.3665 from Rs 54.9915 and Rs 70.2230 last weekend, respectively.
The rupee premium for the forward dollar ended steady to easy on fresh receipts by exporters.
The benchmark six-month forward dollar payable in April settled down at 141-142 paise from last weekend's close of 144-1/2-146-1/2 paise.
However, far-forward contract maturing in October ended stable at its last weekend's closing level of 280-1/2-282-1/2 paise.
The rupee dropped further against Pound Sterling to end the week at 88.48 from preceding weekend's level of 87.40 and also remained weak against the euro to close at 71.61 from last weekend's level of 70.25.
However, it firmed up further against the Japanese yen to finish at 67.49 per 100 yen from previous weekend's levelof 67.98.