Get Annual plan at only Rs 289. We expect the USD-INR to find support at lower levels. Utilise downsides in the pair to initiate long positions, says ICICIdirect.
After a weak start, the Indian rupee slipped further and currently trading at fresh 2019 low at 72.37 per dollar, down 96 paise from the previous close.
It opened lower by 55 paise at 71.95 per dollar versus Friday's close 71.40.
Manali Bhatia, a Senior Research Analyst at Rudra Shares & Stock Brokers, thinks due to global uncertainty and domestic tensions, USD/INR is all set to form a new short term base in the range of 71.1 to 70.9.
On the fundamental front, USD is holding a strong position and India is now likely to react on Chinese Yuan theme. The unrest in Hong Kong and intent depreciation of Yuan by Central Bank for increasing the exports as they are hit by trade war which has immensely deteriorated the sentiments of Yuan in last few days, the analyst said.
The health of the rupee is expected to improve if the US Federal Reserve goes for a rate cut in the next meet on September 17-18. A rate cut will make the US dollar softer against a basket of major currencies and is expected to give a boost to the rupee.
The rupee appreciated by 38 paise to close at a two-week high against the US dollar on Friday led by a rally in domestic equities and renewed hopes of the US-China trade talks, said PTI.
The dollar-rupee September contract on the NSE was at 71.63 in the previous session. Open interest declined 3.27% in the previous session, said ICICIdirect.
We expect the USD-INR to find support at lower levels. Utilise downsides in the pair to initiate long positions, it added.Subscribe to Moneycontrol Pro and gain access to curated market data, trading recommendations, stock analysis, investment ideas and insights from market gurus. Now, get Moneycontrol PRO for 1 year at Rs 289. Use code FREEDOM.
