Currency Outlook Updates for Today: Indian Forex Tips

• Indian rupee shall reverse its Friday`s losses against the US dollar after improved risk sentiments and gains in risk beta currencies such as Euro and Australian dollar. Asian equities have reacted pretty well in early trade on Italian aid news as Nikkei jumped nearly 1.8% to 8,301, Shanghai stayed flat at 2,381, while Hang Sang just shy away from 18,000 with 1.7% rise to 17,992. Rally in riskier currencies was supportive for gain in Asian currencies as South Korea`s won appreciated nearly 0.8 % to USD 1,154.50. The Spot Indian rupee is expected to open near 52.10 vs. 52.26 of Friday`s close and is tipped to move in the range of 51.90 - 52.25 against the dollar.

• In the currency futures market, the most traded near-month dollar-rupee contract on the NSE closed at 52.29. The USD/INR November open interest was down by 12.4%. The December contract witnessed an increase in open interest by 8.4%.

• The US dollar is expected to attract some selling pressure on rallies against the  INR. Utilize the highs in the USD/INR December contract to sell below 52.49 with target of 52.30/52.21 and a stop loss of 52.58.

• Asian currencies dropped for a fourth week, led by South Korea`s won and India`s rupee, as Europe`s debt crisis showed no signs of abating, prompting investors to favor safer assets including the dollar.