Rupee rose snapping a two-day fall, boosted by gains in Asian stock markets and the dollar's weakness against some currencies.U.S. Dollar weakened in New York but only after testing fresh strength in Asia on swine flu fears. Fears the stress tests will require Citibank and Bank of America to raise more capital sent bank shares lower. Helping general sentiment was the large rise in Consumer Confidence to 39.2 vs. 29.6 previously.Looking ahead, Q1 GDP forecast at -4.9% vs. -5.3% previously. Also the FED meet and are expected to remain at 0-0.25% band.
Technical Outlook:
USDINR opened on a lower note. Currency is expected to trade in the range of 50.04-50.40 levels for the day. With good support seen at 49.95 levels and key resistance is seen at 50.57 levels. Stochastic is seen trending down giving bearish crossovers and the but currency is trading above the moving average only a break below it can confirm the down trend.
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