USDINR September 24 - 28 Outlook

Release Time:2018-09-24 02:28

The rupee settled higher at 72.20 to a dollar in Mumbai against 72.37 at close on Sep. 19, amid reports of additional measures such as forex swap window for oil companies and easing global risk aversion. It opened higher and rose to the day's high of 71.75 before briefly giving up all gains and falling to the day's low of 72.48, tracking volatility in local shares. The Indian rupee posted a fourth straight weekly decline against the dollar while plunging to a record low earlier this week, as the government's recent measures to arrest the currency's slump failed to lift sentiment amid rising crude oil prices and weak local shares. The Fed's monetary policy meeting is due on Sep. 25-Sep. 26, while India will announce the outcome of its monetary policy on Oct. 5. According to media reports, the central bank may allow oil companies to buy dollars directly from the central bank. India may begin payment to Iran in rupees for crude oil, separate reports also added. India imports 80% of its oil needs and rise in crude prices risks widening nation's trade deficit.

Technical Outlook

USDINR is expected to trade with positive bias with buying recommended at lower levels. It has resistance at 72.60(137.74) while support is at 72.20(138.50) followed by 71.60 (139.66) mark.