Rupee / Dollar Exchange and Gold price update

Indian rupee regained its upper hand to dollar by 12 paise to 42.78 against the greenback mainly on heavy dollar selling by exporters on Friday.

The rupee-resumed firm at 42.82/83 a dollar from its overnight closes of 42.90/91 a dollar and later improved to 42.78/79 a dollar in late morning deals.

Rupee drew support from reports the central bank may consider increasing the Cash Reserve Ratio or short-term interest rate to contain the rising inflation.

The Rupee Dollar - a technical perspective

After remaining below Rs. 40 levels for about six months (from Sept 07 to Feb 08), the Dollar/ Rupee rate touched Rs 40.70 and has since retraced 61.80% of its move ( 61.80% is a Fibonacci retracement level)

Also after it took support at Rs 39 thrice during the period Sept 07 to Feb 08 , the technical pattern visible was of a 'rounding bottom'- which is a reversal pattern. In this case it reverses the down trend in the Dollar against the rupee.

The current technical structure is in favor of the dollar rising further against the rupee ( i.e. rupee depreciating further).

My technical target over a period of the next few months would be Rs 41.60-41.90 per dollar.

The current price of dollar is Rs 40.02 and I expect the up move to restart once it breaks the resistance level of Rs 40.15 in coming days. Sensex stock index.

Probably those of you investing in stocks can take a cue from this and dig out stocks which can benefit from a depreciation in the Rupee!!

Rupee / US Dollar Forex Currency News, Gold in India, and The Sensex index on the Bombay Stock Exchange (BSE). Euro / Rupee and Yen / Rupee.

The rupee failed to hold its overnight level in relation to dollar on the interbank market on Tuesday, losing 35 paisa for buying and selling at 67.25 and 67.35, currency experts said. The rupee resisted sharp decline versus the dollar due to smooth supply of the US currency.

Besides, it is expected that the rupee may lose more ground following persistent uncertainties on the political and economic sectors, they added. In the second session, the yen rose after a report that US investment bank Lehman Brothers may raise new capital, stoking worries about more fallout from the global credit crisis and prompting investors to avoid risky currency bets. The Wall Street Journal reported on Tuesday that US investment bank Lehman Brothers may raise $3 billion to $4 billion in new capital, suggesting the firm could post its first quarterly loss since going public.

OPEN MARKET RATES: The rupee gave up its firmness in relation to dollar, falling 40 paisa for buying and selling at 67.80 and 67.90, they said. The rupee also continued its weakness versus to euro, losing 69 paisas for buying and selling at 105.20 and 105.30, they said.