Go long in rupee with stoploss at 54.30: Nirmal Bang

Nirmal Bang has come out with its report on currency. The research firm recommends investors to go long in the rupee from the current levels for a target of 53 in spot with a strict stoploss of 54.30. 

The Indian rupee slumped to a one-month loss on Friday to post its biggest weekly decline in four months on the back of huge dollar buying from state-run oil and defence companies, along with demand from foreign banks.  Oil companies, the largest buyers of dollars in the domestic currency market, were spotted buying the greenback through the session, more than offsetting the large dollar sales from exporters.  The partially convertible rupee closed at 53.84/85 per dollar, compared to its close of 53.41/42 on Thursday. The rupee weakened at one point to as much as 53.99, its weakest since Sept. 21. 

The rupee has depreciated significantly in the last few sessions. We expect to see good exporters’ participation at the current levels. Moreover, we expect a rate cut of 25 basis points in the upcoming RBI policy review meet which is likely to lend some support to the rupee in the short-term. We recommend investors to go long in the rupee from the current levels for a target of 53 in spot with a strict stop loss of 54.30.

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