Published on 18/09/2020 9:23:48 AM | Source: HDFC Securities Ltd

Rupee could open higher on strong Asian peers - HDFC Securities

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Rupee could open higher on strong Asian peers HDFC Securities

Indian rupee expected to open gap up after overnight weakness in the dollar index against major currencies. The bias for rupee remains bullish unless it breaks the level of 74 level while on upside it is having resistance at 73.15 a dollar.

On Thursday, rupee lost 13 paise or 0.18% to 73.65 a dollar amid risk off tone after federal reserves held the interest rate unchanged and sound less dovish the market expectations. The Reserve Bank of India (RBI) on Thursday announced it would go for an outright purchase of Rs 10,000 crore of bonds from the secondary markets on September 24.

The dollar weakened versus most Group-of-10 currency peers even as a report showed gradual improvement in the labor market. The yen touched the highest level since July as appetite for riskier assets ebbed amid concern over whether existing stimulus is enough to boost the global economic recovery.

On Thursday, Pound was one of the worst performer among G10 currencies after BoE indicated it may consider cutting interest rates below zero for the first time in its history as the economy faces a surge in coronavirus infections and the risk of a no-deal Brexit. Elsewhere, Oil prices increased after the Organization of the Petroleum Exporting Countries (OPEC) and its allies stressed commitment to their agreed output cut.

Technical Observations:

USDINR September Futures formed Doji candlestick pattern below 13 Days Exponential Moving Average, suggesting indecisiveness among traders.

As the pair is trading below short term moving average, it continues to trade with negative bias.

Momentum Oscillator, RSI of 14 days period placed at 44.

The formation of lower top lower bottom indicates weaker trend.

The pair is having support at 73.30 and resistance at 74.



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