Analysis on Indian rupee - 28th November 2014 - Geofin Comtrade Ltd

Indian rupee opened weaker at 61.93 and there after made a intraday high of 61.87 due to firm equity market sentiment, lower crude oil prices and stable overseas dollar movement.

However dollar demand from corporates, weak European markets and Euro and caution ahead of the upcoming RBI policy outcome led rupee to pare all if it's intraday gains and make a low of 62.07.It closed at 62.0250 weaker by 0.24%.

RBI is expected to hold the policy rates unchanged in its upcoming policy meeting on Dec 2 even though whole sale price inflation has moderated and growth is expected to be weaker. Status quo by RBI will augur well for rupee.

Technically 61.80 & 61.60/62 is a very critical resistance level for rupee and as far it holds that level we can expect rupee to weaken further towards 62.20/30 levels in the near term.

Source : Equity Bulls

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