Rupee likely to consolidate before next move: IndusInd Bank
According to Mr. J. Moses Harding, Head Global Markets Group, IndusInd Bank, currency market is likely to be in a consolidation phase before the next move up, hence would look for stability in rupee at 50.00-50.50 within 49.80-50.80.
IndusInd Bank’s report:
We had looked for stability within 50.00-30 with overshoot into 49.80-50.00 not to sustain based on the support there from RBI and/or oil PSUs. Rupee posted smart gains to hit 49.88 only to give up for a fall to 50.14 before closing the day at 50.05 (on 6/4) and traded around 50.10-15 yesterday (7/4) with most markets closed. The strength in rupee was triggered by bullish stock market; steady crude oil and dollar’s loss against major currencies. However, oil companies’ entry to buy forward dollars limited rupee gains