BS:Rupee closes to week's high after GAAR deferrment
The USD/INR today closed to a week's high, now at 52.965/975 vs 53.47/48 close on Friday, after Finance Minister Pranab Mukherjee said the controversial GAAR provisions on taxation would be deferred by a year.
Foreign investors had asked for a deferment to allow them to comply with any new regulations. USD/INR should see support in 52.80-52.65 range, senior dealer says.
According to Standard Chartered, the USD/INR is likely to move lower as more inflows are expected after the government plans to defer the implementation of GAAR provisions by a year.
The pair is overbought with immediate psychological support at 52.50 a dollar, StanChart says.
A breach of support will open the door for a test of 51.98, which is the 38.2% Fibonacci retracement of the 48.85 to 53.92 gains, says the report.
StanChart maintains a short-term FX rating of "neutral" on the Indian unit.
