Rupee recovered from the fall

Rupee recovered from the sharp fall as banks sold the greenback on expectations of dollar inflows following a newspaper report that the government may ease norms on external commercial borrowings and tracking rise in global share. The easing in ECB norms is likely to lead inflows so banks were seen selling dollars. The annual review of the policy on external commercial borrowings expected in a fortnight could ease some of the end-use restrictions in place.

Tech view:

Rupee is expected to trade on a mixed note with the trading range of 42.30-42.80.With good support seen at 42.22 levels .Key resistance is seen at 43.02 Currency is expected to give a downward correction as it has already tested the upper Bollingers but an element of caution is required as it is still above the fast moving averages. Sensitivity indicator stochastic is at overbought level hinting towards the possibility of small downward correction.