Mumbai: The Indian rupee rose sharply in choppy opening trade, with the pair at 53.11/12 after falling to 53.52 initially, compared with the 53.45/46 close in the previous session.
“There is panic selling from exporters on fears the rupee will strengthen more,” says a senior dealer with a state-run bank. Talk of non-deliverable forward arbitrage-related selling is also helping rupee, say dealers.
Asian stock and foreign exchange cues are negative, but dealers are bullish on the rupee, given the recent spate of reforms. India may raise the overseas borrowing limit by Indian corporates by $10 billion to $50 billion in a bid to draw more capital, an unnamed finance ministry official told The Economic Times.
The currency has major support at 52.96, which is the 38.2% of the 43.85-57.32 rise. Initial resistance will be at 53.66, the initial low last week, as per technical charts.
The euro got off to a subdued start on Monday, having suffered its first weekly decline in five weeks after a recent batch of weak economic data underscored challenges facing euro zone policy makers.
Source : livemint.com