In addition, there is now a feeling of risk in the Indian market, which is a ballast for the dollar.
The rupee appreciated by 0.7 percent during the last week against the dollar, since the exchange rate was 85.19 on Tuesday. The local currency continues to receive support from the weak dollar.
The dollar index reached a new minimum of three years of 97.92 on Monday before recovering slightly to the current level of 98.50. Greenback has remained lower as well as the yields of the United States treasure have increased recently since investors are not so interested in the assets of the United States.
In addition, there is now a feeling of risk in the Indian market, which is a ballast for the dollar. In line with this, the national capital market has served in the last two weeks.
Consistently, there are good capital tickets, helping the rupee more. According to NSDL data, Net FPI (foreign portfolio investors) during last week remained at $ 1.9 billion.
The graphics also show a positive bias for rupee. An analysis is shown below.
Chart
The rupee marked a maximum of three weeks of 85.04 on Monday before moderating a bit at 85.18 on Tuesday. From the current level, the closest resistance is in 85.
If the Indian currency leaves 85, it can extend the increase to 84.80, a possible support. A rupture of this can raise it to 84.50.
On the other hand, if the rupee falls on the back of the obstacle at 85, it can fall to 85.70, remarkable support. Under this, immediate support is in 86.
The weakness of the dollar index is positive for rupee. From the current level of 98.50, the dollar index can depreciate more. The support levels are at 96.50 and 95. For the trend to become bullish, the barrier must clearly exceed 101.15.
Until then, the bears will have an advantage for the dollar index, which is good for the rupee.
Perspective
We hope that the rupe extends the increase of the current level or 85.18 to 84.80. After this, there may be some moderation, possible at 85.20 and 85.50. In general terms, the local unit retains the bullish bias.
Posted on April 22, 2025
