Sunday, March 8, 2009

Rupee weakened in early trade-Mar 09.

Rupee weakened in early trade as losses in other regional markets raised expectations of more capital outflows from local shares but the dollar's weakness against majors is seen averting a sharp drop. U.S. Dollar traded with the expected large range due to the Non farm Payroll release. The figure for February at -651K was at expectations but the Unemployment Rate surged to 8.1% the highest rate in 30 years. Early Dollar weakness seen in Europe was reversed as the Employment figures caused risk aversion to spike higher and safe haven buying.
Technical Outlook:
USDINR chart pattern shows a narrow trade for the day .With the trading range between 51.45-51.90 levels for the day. Good support is seen at 51.20 levels and key resistance is seen at 52.00. Narrow Bollinger width shows a tight range. Stochastic is seen trending down giving bearish Outlook.

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