Rupee could appreciate further up to 52.50 in near term: Microsec

By Vinit Pagaria, VP – Investment Strategies at Microsec Capital Ltd

The rupee has been depreciating at an alarming pace since the beginning of March 2012 when it was hovering around the Rs 49 mark as against the dollar.

The dollar rose continuously against the Indian currency and tested a high of Rs 57.32 on 22 June 2012, representing an increase of almost 17 percent in less than four months.

The rupee retraced smartly thereafter and made a high of Rs 54.1750 on Wednesday before ending the week at Rs 55.4550. It is seeing some temporary pullback on account of the dollar’s weakness witnessed in the last few trading sessions.

The short-term trend appears weak for dollar/rupee and the Indian currency could appreciate further up to 53.50 and 52.50 in the next couple of weeks.





On the upside, the resistance levels are 56.40 and 57.30 and the move is likely to remain in the band of 52.50 and 57.30 in the medium term as well and volatility is expected to reduce significantly in the next couple of months.

There is a positive bias for the rupee and, hence, we recommend selling the pair for around Rs 56.40 for a target of Rs 53.50 and a stop loss of Rs 57.35.

(The views and recommendations expressed in this section are the analyst's and do not represent those of EconomicTimes.com)