Strong support for rupee seen at 45.5: Commtrendz

Commtrendz Research says a daily close above 45.55 is keeping bullish hopes alive. Strong supports will be seen at 45.48-50 now. Ideally, support from here could take prices higher again towards 45.78/80. Unexpected fall below 45.42 could dent our bullish expectations.

"Yesterday's persistent dollar rally despite the negative factors has altered the bearish picture. However, failure to close above 45.63 still indicates bearishness to be intact. While below 45.65 we expect a gradual fall towards 45.45. Good support will be seen here now.

The dollar index was down at 80.26 with immediate support at 80.239, and more around 79.80 -- its March 3 low.

The euro briefly came under pressure on Thursday after German Chancellor Angela Merkel said the first priority for Greece was to win back the confidence of financial markets and the debtstricken country's first steps were a positive.

In early Asian trade, the euro was a tad up at $1.3685 from $1.3677 late in New York on Thursday, when it rose a little over 1 percent.

Sterling edged up $1.5075, from $1.5056 late on Thursday, after a slight up tick in inflation expectations and a bout of short covering.

The yen broadly lost ground in early Asian trade, falling to 90.70 yen from 90.55 yen late in New York on Thursday. The yen could draw support from robust repatriation inflows in the run-up to the fiscal year-end on March 31.

Market will be focusing on the retail sales data due today. Any rise above 1 percent in retail sales could encourage further risk appetite for high yielders and commodities." says Commtrendz Research report.