The rupee is likely to gain on expectations that the RBI will use currency strength to fight inflation and on hopes of foreign buying of stocks following strong gains in other Asian markets. Asian stocks jumped and bonds fell after a Lehman Brothers securities offering met strong demand, raising hopes that the worst of the credit crisis might be over. Volatility in the Indian rupee will rise on speculation of Reserve Bank of India meet on interest rates.Rupee is expected to trade in the range of 39.80-40.10.Currency is expected to be highly volatile for the day. Good support is seen at 39.70 and key resistance for the currency is at 40.20.Stochastic and Relative Market strength index are giving a indication of the downtrend but an element of caution is required as it is seen at oversold levels.
Wednesday, April 2, 2008
Rupee likely to gain
The rupee is likely to gain on expectations that the RBI will use currency strength to fight inflation and on hopes of foreign buying of stocks following strong gains in other Asian markets. Asian stocks jumped and bonds fell after a Lehman Brothers securities offering met strong demand, raising hopes that the worst of the credit crisis might be over. Volatility in the Indian rupee will rise on speculation of Reserve Bank of India meet on interest rates.Rupee is expected to trade in the range of 39.80-40.10.Currency is expected to be highly volatile for the day. Good support is seen at 39.70 and key resistance for the currency is at 40.20.Stochastic and Relative Market strength index are giving a indication of the downtrend but an element of caution is required as it is seen at oversold levels.
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