The Indian rupee opened marginally higher at 82.78 per dollar against Friday’s close of 82.86. The local unit is expected to appreciate on Monday mainly on the back of a weak US dollar and rise in risk appetite in Asian markets. However, a surge in crude oil prices may prevent sharp gains in domestic currency. “Also, as the holiday season started market volume may remain thin. US$INR (December) is facing strong resistance near 83.00 level. As long as it sustains below this level it may slip back to 82.55 level,” said ICICIdirect.
Santa rally in Rupee may be on cards
“Rupee is likely to trade in a range of 82.55 to 83.10. We could observe a Santa rally in Rupee with the logical reason that IT and MNCs companies usually convert their dollars at the year-end and thus bring positivity to the Rupee. Further, if RBI wants to close the Calendar Year on a good note then they can turn out to be a Santa. Overall, fundamental factors are already in place for a stronger Rupee, just that currency is not reacting as per the expectation. Broadly, we are standing near the top of 82.75-83.00 and the pair is expected to make a reversal towards 82.00-81.50 in the near term,” said Amit Pabari, MD, CR Forex Advisors.
USDINR pair likely to trade sideways
“USDINR is not quite far from its record peak, but does not appear ready for a breakout move higher despite several periods of consolidation in this vicinity. Towards this end, expect sideways moves while inside 82.84-82.59. While 82.84/88 is not a breakout point, we will again be encouraged to look for 83.25, once above” said Anand James – Chief Market Strategist at Geojit Financial Services.
“In the last weeks, major central banks came out with their policy statements and volatility for riskier assets and the dollar remained elevated. Be it the central bank policy statements from the Fed, ECB and the BOJ that surprised investors with its hawkish stance. Recent data releases from the US have been better-than-estimates. Today, volatility could remain low as most global markets remain shut on account of Christmas holiday. We expect the USDINR(Spot) to trade sideways and quote in the range of 82.40 and 83.20,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
Rupee may breach 83 mark soon
“The USDINR 28 December futures contract showed weakness and crossed 82.85 levels once again. On the weekly technical chart the pair is trading above its resistance level of 82.05. RSI is fetching above 60 levels but MACD is showing negative divergence on the weekly technical chart. Looking at the technical set-up, the pair has crossed its major hurdle of 82.85 and is showing strength. If the pair sustains above 82.85 it could show further strength towards 83.00-83.30; support is placed at 82.55-82.40 levels. We suggest buying in the pair around 82.80-82.50 with a stop loss of 82.20 for the target of 83.00-83.30,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
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