Rupee weakens against US Dollar; support seen at 82

Rupee weakens against US Dollar; support seen at 82.50-82.35, resistance at 82.88-83.05

In the early trading session on Tuesday, the rupee experienced a 0.02% depreciation, falling to 82.62 against the US dollar. The decline was influenced by the weakness of the US dollar against other major global currencies. The dollar index, which measures the strength of the US dollar against six different currencies was also trading lower by 0.20% at 103.85.

“The USD-INR August 29 futures contract traded in a tight range. As per the daily technical chart, the pair is trading below its moving average trend-line support level of 82.88 and MACD is showing negative divergence. Looking at the technical set-up, RSI is fetching below 50 levels and the pair is sustaining below 82.88 levels. As per the daily technical chart the pair is having support at 82.50 – 82.35, while resistance is placed at 82.88 – 83.05,” said Rahul Kalantri, VP Commodities, Mehta Equities.

Meanwhile, the benchmark domestic indices were trading in the green in intraday trade on Tuesday. The NSE Nifty 50 was trading at 19,334.55, up by 0.15%, while the BSE Sensex was trading at 65,058.31, up by 0.09%.

“August has been weak for global equity markets. In the mother market of the US, the S&P 500 is down by 4% so far in August. This weakness has impacted all other markets including the Indian market where Nifty is down by around 2% so far in August. The global economic scenario and the growth, inflation and interest rate trends in the US will continue to determine stock market trends globally. The Fed chief Powell’s candid remark at Jackson Hole that ‘we are navigating by the stars under cloudy skies’ is an indicator of the uncertainty surrounding the global economy and markets. However, the Powell commentary was neutral without any market-moving hawkish or dovish tones. The high US bond yields and the dollar index above 104 are near-term negatives for capital flows to emerging markets like India,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial.