Buy Indian rupee on decline, advises Sushil Finance

Sushil Finance's report on currency

The Indian Rupee appreciated marginally by 0.01 percent in Yesterday’s trading session and closed at 61.803. Rise in risk aversion in the global markets, demand for dollar from Importers and strength in dollar Index added downside pressure on the currency. Additionally, US government Shutdown and fear about US Debt default acted as a negative factor for the Indian Rupee. However, foreign fund flows, RBI measures to attract more Inflows and RBI decision to slash MSF rate by 50 bps prevented sharp depreciation in the Indian Rupee. Outlook: We expect Indian Rupee to trade on negative note on the back of rise in risk aversion in the global markets coupled with strength in DX. Further, International Monetary Fund (IMF) slashed India’s GDP growth which may act as a negative factor for the Indian Rupee. Additionally, demand for dollars from Importers and fear about US Debt default may keep currency under pressure. However, RBI measures to attract more inflows and RBI decision to slash MSF rate by 50 bps may prevent sharp depreciation in the Indian Rupee or even reversal may be seen. Technical Outlook
Currency - USDINR October
Strategy - Buy on Dips
Support - 61.8/62.1
Resistance - 62.75/62.95 Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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