The Indian Rupee is on firm ground against the US Dollar and may see further strengthening in the near term, Senior Technical Analyst Anuj Gupta opines. Gupta said that there are positive indicators including a strong support by the record increase in forex reserves, which have increased by USD 5.92 billion to touch life time high of USD 507.644 billion.
The analyst further said that the weakness in Dollar coupled with the strength in India’s equity market are some other factors that are making Indian Rupee look good. The weakness in USD augurs well for the Indian Rupee, he said.
At 12:05 pm, the June Currency Futures (U S Dollar-Indian Rupee – USD-INR) were trading at 75.7050 against the US Dollar. The USD was trading strongly today against the Indian Rupee and was up by almost 0.11 per cent from the last close. The USD-INR today opened at 75.6000 and attained an intraday high of 75.7700 while a low of 75.5625.
Gupta puts the intraday stop loss at Rs 76.0000 while the target price at Rs 75.2000.
Gupta who is a Deputy Vice President, Commodity and Currency Research at Angel Broking said that he expects the Rupee to test 75.50 to 75.30 levels.
He said that he expects the Rupee to reach these levels with a 7-10 day view.
He said that on Tuesday, the Indian Rupee appreciated by almost 0.66 per cent and has already appreciated by over 1 per cent in the last five trading days.
Zee Business has previously reported that the Reserve Bank of India (RBI) has been buying dollars as it would like to contain Indian currency at around 75.40 per dollar levels, quoting experts. The US dollar is under huge pressure due to the further spread of the Coronavirus and fast approaching US presidential elections, the experts have maintained.
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As per the information available on RBI website, the total Foreign Currency Assets as on 12 June was 3555312 cr in INR terms.