Moneycontrol
Feb 22, 2012 05:37 PM IST | Source: Moneycontrol.com

Rupee may appreciate to 48.60/dollar Moses Harding

USD/INR is now into consolidation mode trading end-to-end between sell zone of 49.50-49.65 (high of 49.54) and buy zone of 49.00-49.15 (low of 49.05) before close at 49.31.

Rupee may appreciate to 48.60/dollar Moses Harding

By Moses Harding, Head - ALCO and Economic & Market Research, IndusInd Bank.


Currency market

USD/INR is now into consolidation mode trading end-to-end between sell zone of 49.50-49.65 (high of 49.54) and buy zone of 49.00-49.15 (low of 49.05) before close at 49.31. The strategy to sell up to 3M dollar receivables at the sell zone and to buy up to 1M dollar payables at the buy zone has proved good. However, near term outlook is for extended gains into 48.60 ahead of 47.80; hence the recommendation for exporters to absorb higher USD/INR spot to cover 6-12M receivables while importers to stay uncovered beyond 1-2M. What next? The near term outlook for rupee continues to stay good driven by dollar supplies both in cash and forward market. The chance of rupee bulls pushing USD/INR spot into 48.85-48.60 is bright. This zone was earlier considered as high risk zone to stay

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