Trading At 74.7 Vs Dollar, Rupee Exhibits Bullish Bias

Money & Banking
Akhil Nallamuthu

BL Research Bureau | Updated on

July 07, 2020

Published on

July 07, 2020

The rupee (INR) began Tuesday’s session on a flat note at 74.7 versus yesterday’s close of 74.68 against the dollar (USD). Since INR stays above the important support of 75, bulls will have an advantage. Currently hovering around 74.7, the nearest support for the rupee is at 74.8. Below that level, 74.9 can be a support. If the rupee advances, the immediate resistance levels are at 74.6 and 74.5.

Foreign Portfolio Investors (FPI) were net buyers yesterday. The net inflow on Monday was nearly ₹350 crore (equity and debt combined). They have been buyers last month and, if this trend is to continue, the rupee can firm up against the dollar.

Dollar index

The dollar index posted a loss yesterday as it closed below the support at 97. Thus, it has slipped below the 21-day moving average, turning the near-term outlook negative. Currently trading at 96.75, the nearest support for the index is at 96.25. The subsequent support is at 96. A decline in dollar demand can be positive for the Indian currency.

Trade strategy

The rupee, currently trading at 74.7, exhibits bullish bias. Moreover, the dollar index has breached a support, opening the door for further weakening. So, traders can go long in rupee on declines with stop-loss at 74.9.

Supports: 74.8 and 74.9

Resistances: 74.6 and 74.5

Published on July 07, 2020

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