Rupee to get support at 51.24-51.54 range: Hitesh Daga

Hitesh Daga, director HRIM Finance

The rupee is expected to open flat to weak on Monday taking cues from global markets as Euro weakened in the European trade. The demand for Italy’s bonds on Friday’s auction was not as good as that for Spain’s bonds. Late Friday evening, S&P had downgraded France to AA+.

Technically, there are cluster of strong supports for dollar-rupee pair between 51.24-51.54. The dollar-rupee shall weaken to 50-levels only on a sustained close below the 51.24 spot. Resistances for the dollar-rupee trade are placed at 52.10-52.28.

Spot rupee is expected to trade in the range of 51.24-52.28 for the week. Below 51.24, the targets are at 50.20 levels and above 52.28, one can expect further strength in the dollar-rupee movement to 52.8-53.10 levels.

One-year forward premium is expected to remain in the range of 5.25-5.50%. Euro-dollar has strong support in the range of 1.2480-1.2520 for the week, and 1.2880-1.2920 shall act as a resistance for the pair. The Euro-rupee momentum is expected to weaken further as long as it trades below 66.20-66.40 taking cues from the Eurodollar pair.