Signs of stability in rupee; watch out for 51.80/$ level

Signs of stability in rupee; watch out for 51.80/$ level

After a storm last week that pushed the Indian currency to its lowest bottom, signs of stability seen to return into the falling rupee.

“It was obviously in the oversold zone or rather dollars had been overbought, considerably,” said CNBC-TV18’s Latha Venkatesh. However, as the Euro today has not gone down below the 1.3250 mark, and the stock market is in green, Venkatesh suggests that people are continuing to unwind their long dollar positions or at least not adding to fresh long dollars.

“There was buzz about the RBI selling dollars but not all bankers agreed to it. And, this seems to be the dollar falling on its own weight,” she said further.

The next watch out level for the market now, Venkatesh suggested is the 51.80/$ level, technically. “People will watch out to see whether that level is breached and only then will perhaps a fresh unwinding of dollar longs or fresh short dollar positions will be taken,” she added.

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