Indian rupee may trade in 56.70-57.10 range: Karvy

Karvy's research report on currency -

Asian equities are trading down, the dollar is trading weak and the euro is on a flat note. As the day progresses, India’s PMI manufacturing data is due to be releases and is expected to decline, this may limit gains in the rupee. In the afternoon session, Germany and the eurozone will release their PMI data, which are likely to improve. These factors should support the euro and pressurize the dollar against the rupee. In the evening session, a few key economic releases from the US are expected. These are expected to decline and may have a negative impact on the dollar. Overall, we expect the rupee to trade in a range against the dollar today.

USD/INR June-MCX-SX-NSE
The dollar-rupee pair closed higher at the 56.7925 level, gaining 0.35 percent or 0.20 paisa on Friday. The pair witnessed an intraday low of 56.50 and then, a high of 57.05. However, the pair could not sustain near the day’s high, which could be attributed to slight long liquidation at the higher levels. The daily RSI has broken past the 80 level, suggesting overbought conditions in pair for the short-term. The daily candlestick shows a spinning top formation, indicating indecision among buyers and sellers. In light of this, we expect range bound trade in today’s session, unless a clear breakout is seen in either direction. We expect the pair to trade in a range of 56.70-57.10 for the day.

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