ICICIdirect expects the USD-INR to find support at lower levels. Utilise downsides in the pair to initiate long positions.
The Indian rupee ended flat at 70.89 per dollar in the volatile trade on October 4 after Reserve Bank of India cut repo rate by 25 basis points.
The local currency has touched a low of 71.03 intraday Friday after opening on flat note.
The Reserve Bank of India’s monetary policy committee on October 4 slashed rates by 25 bps, and kept the stance accommodative to revive growth in Asia's third-largest economy.
The central bank slashed policy rates for the fifth time in a row in line with expectations. Consequently, the rate cut totals to 135 bps in 2019 and the repo rate stands at 5.15 percent now.
The Indian rupee recovered from the day's lows and settled higher by 20 paise at 70.88 to the US dollar on Thursday, helped by weakening of the greenback overseas and easing crude oil prices, said PTI.
However, sustained foreign fund outflows and sell-offs in domestic equities put pressure on the forex market, somewhat capping the rupee gains, it added.
The dollar-rupee October contract on the NSE was at 71.07 in the previous session. Open interest rose by 1.85% in the previous session, said ICICIdirect.We expect the USD-INR to find support at lower levels. Utilise downsides in the pair to initiate long positions, it added.