RBI`s monetary policy may support rupee: SushilFin

Sushil Finance's report on currency

The Indian Rupee appreciated by 0.33 percent in yesterday’s trading session and closed at 61.31 on the back of rise in risk appetite in the global markets. Further, Indian Central Bank raised the interest rates which were in line with the market expectations and lowered its Marginal standing Facility, which supported currency to gain strength. Apart from that, strong fund inflows and RBI measures to attract inflows acted as positive factors for the Indian Rupee. However, strength in DX along with the month end dollar demand from Importers prevented sharp gains in the Indian Rupee. Outlook: We expect Indian Rupee to trade on positive note on the back of upbeat global market sentiments. Further, Indian Central Bank monetary policy is in line with the market expectations, which may support currency to trade positive. Additionally, disappointing economic data from US fuelled the expectations among the investors that the US Federal Reserve may continue with its bond buying programme, which may act as a positive factor for the Indian Rupee. Apart from that, strong fund inflows and RBI measures to attract inflows may support currency to gain strength. However, strength in Dollar Index and month end dollar demand from importers may prevent sharp gains in the currency. Technical Outlook
Currency: USDINR Nov
Strategy: Sideways
Support: 61.40/61.65
CMP: 61.85
Resistance: 62.15/62.40 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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