Expect Indian rupee to trade on mixed note: Sushil Finance

Sushil Finance's report on currency

The Indian Rupee depreciated by 0.08 percent in yesterday's trading session and closed at 62.362 on the back of weak domestic market sentiments. Further, expectation among the market participants that the US Federal Reserve may start tapering bond buying programme soon after the strong economic data added downside pressure on the currency. However, narrowed current account deficit capped further, downside in the currency.

Outlook: We expect Indian Rupee to trade on mixed note. Narrowed current account deficit and weakness in DX may support currency to trade positive. Further, India's GDP grew more than expected and RBI measures to attract inflows may act as desirable factors for the currency. Whereas, RBI decision to shut the currency swap window and mixed global market sentiments may keep Indian Rupee under pressure. Additionally, expectation among the market participants that the US Federal Reserve may start tapering bond buying programme soon after the strong economic data, may prove fatal for the Indian Rupee.

Technical Outlook
Currency - USDINR DEC
Strategy - Sideways
Support - 62.30/62.60
Resistance - 63.0/63.3

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