Expert's take: Rupee-dollar pair to test 45.30-45.50 levels
The rupee-dollar pair is moving in a consolidation range of 44-46 levels for the past eight months. The short- term trend is up.
Updated:
Hemal Doshi
Senior Manager, Geojit Comtrade
The rupee-dollar pair is moving in a consolidation range of 44-46 levels for the past eight months. The short- term trend is up, after making a low of 43.90 (April 2011), for the past one month.
We expect the pair to see a short-term upmove to test the 45.30-45.50 levels. Any minor decline from current levels will garner support in the range of 44.75 to 44.85. Equity markets are under pressure after RBI’s rate hike of 50 bps, dismal quarterly results by most companies, high commodity prices and inflation.
FIIs have sold equity worth Rs 5,140 crore in the month of May so far, which suggests that FIIs are bearish in the near-term. No major IPO is lined up this week and the usual month-end dollar demand from oil companies will be seen in the market.
Senior Manager, Geojit Comtrade
The rupee-dollar pair is moving in a consolidation range of 44-46 levels for the past eight months. The short- term trend is up, after making a low of 43.90 (April 2011), for the past one month.
We expect the pair to see a short-term upmove to test the 45.30-45.50 levels. Any minor decline from current levels will garner support in the range of 44.75 to 44.85. Equity markets are under pressure after RBI’s rate hike of 50 bps, dismal quarterly results by most companies, high commodity prices and inflation.
FIIs have sold equity worth Rs 5,140 crore in the month of May so far, which suggests that FIIs are bearish in the near-term. No major IPO is lined up this week and the usual month-end dollar demand from oil companies will be seen in the market.
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