Rupee seen to hold support at 44.35 and 44.75

The dollar-rupee pair closed at 44.51/52 on Friday. The week was extremely volatile with the market swinging alternately between despair and hope in line with the international markets.

The risk-on/risk-off scenario in the global markets posed a challenge to the currency dealers’ ability to guess the market mood right. With the euro moving in volatile ranges, the dollar-rupee market is likely to follow suit.

However, the notable factor has been holding of ranges in the dollarrupee, with the support holding at 44.35 and the resistance holding at 44.75.The equity markets did nothing to revive the spirit and were mostly flattish with anegative bias.

This week, we expect the rupee to hold support and see resistance at 44.35 and 44.75, respectively. However, the tone will be ‘biddish’, and with some genuine buying from the oil companies and other importers one can actually expect to go long on the pair at lower levels.

With no major domestic data on the anvil, all eyes would be on international factors including the Chinese PMI and the German Survey Data expected this week.


Navin Raghuvanshi GROUP ASSOC VICE-PRESIDENT Development Credit Bank