Rupee edged higher supported by the dollar's weakness-Feb 06.

Rupee edged higher supported by the dollar's weakness against some Asian currencies and hopes for a firm opening in stocks. U.S. Dollar despite weak economic data released overnight, stocks in the US rallied off year lows to end up over 1%. High Yielders rallied and the USD/JPY surged past resistance at 90 Yen. Weekly Jobless Claims jumped to 626K vs. 585K previously and December Factory Orders dropped -3.9% vs. -3%. Q4 Labor Costs rose 1.8% vs. 3% forecast and Productivity jumped to 3.2% vs. 1.4% expected. Looking ahead for December Non Farm Payrolls are forecast at -525K vs. -524K bringing the Unemployment Rate to 7.5%

Technical Outlook:

USDINR chart pattern gives an indication of a small upward correction for the day. The currency has broken the lower band level and expected to give a upward correction But the Indian unit would return to bear territory with the breach of 48.65 Trading range is expected between 48.63 - 48.88.With good resistance at 48.95 level for the day.