Indian rupee opened stable at 60.77 and then made a high of 60.6550 due to firm global equity markets, bunched up dollar inflow and firm Asian currencies. Receding geo political tension in Ukraine and Gaza also aided bullish sentiment. Rupee closed at 60.6750 firm by 0.14%.
Dollar investor will remain cautious ahead of Jackson hole meeting starting Thursday which is a period of high volatility. Also the latest report from CFTC showed that speculators reduced bullish bets on the US dollar in the week ended Aug. 12, after net longs had hit a more than one-year high in the previous week. Net longs declined for the first time in four weeks.
Technically todayís rupee close near days high and continued trading above 200 DMA level of 61 indicates that further appreciation for rupee is expected till 60.40/50 levels.
By Hemal Doshi, Geojit Comtrade Ltd.