Currency Outlook Updates for Today: Indian Forex Tips

• In the currency futures market, the most traded near-month dollar-rupee contract on the NSE closed at 52.13. The USD/INR November open interest was down by 5.8%. The December contract witnessed an increase in open interest by 4.8%.

• The euro stayed under pressure in Asia on Friday amid investor jitters over the European debt crisis.

• Rupee snapped an eight-session losing streak, supported by dollar sales from corporates and some probable rollback of long-dollar positions.

• The Rupee closed 29 paise higher at Rs 52.06/07 per US dollar today after its eight-day losing streak was arrested by fresh selling of the American currency.

• The dollar may strengthen more than 20% to as high as 94 yen should it climb above key resistance levels at 83.30 and 85.50, MIG Bank said, citing trading patterns.

• The pound fell to a seven-week low against the dollar after German Chancellor Angela Merkel said joint euro bonds would send a ``wrong signal,`` spurring demand for the relative safety of the US currency.

• The US dollar is expected to attract some buying on declines against the INR. Utilise the lows in the USD/INR November contract to buy above 51.87 with target of 52.07/ 52.19 and a stop loss of 51.75.

Currency Tips for Today: Indian Forex Outlook

Indian rupee is expected to open weaker against the US dollar mainly in a range between 0.3-0.5% vs. 52.31/32 a dollar. It posted a historic low of 52.73 and chance of it getting crossed today is minimal as we believe either recovery in local stocks or RBI`s intervention mood could rather cool down its pace of depreciation. Relying on these two conditions during the day the biased for spot rupee is positive while it is expected to move in a range of 52.00- 52.48.

Indian Forex Tips: Outlook Strategy for Today

USD INR: 52.3
USD INR is in strong uptrend, on the edge of crossing previous high of 52.37, after crossing this further upside in the counter could also be seen.

EUR INR: 70.23
EUR INR is trending higher in rising channel and is on verge of testing the valid resistance line of rising channel. Some profit booking cannot be ruled at resistance level pegged at 71 levels.

GBP INR: 81.78
GBP INR is surging up in higher high/low fashion and is on verge of crossing the upper channel line on cross of which further upside could also be seen.

Indian Forex Tips: Trend and Strategy for Today

• Dip in USD/INR towards 51.39 is a good buying level with a stop of 51.22 for target of 51.74.

• Dip in EUR/USD towards 1.3496 is a good buying level with a stop of 1.3446 for target 1.3611.

• Dip in GBP/USD towards 1.5718 is a good buying level with a stop of 1.5680 for target 1.5806.

• Rally in USD/JPY towards 77.02/09 is a good selling level with a stop of 77.32 for target 76.72.