MUMBAI: The MCX-SX February Rupee futures opened weaker in early trade on increased dollar demand by banks and concerns over fund outflows from the weak domestic equity markets in tandem with falling Asian share markets.
FII’s have pulled out about $1.1 billion from Indian shares so far in January after selling more than $13 billion in 2008. The dollar rose against the euro on Friday as deepening concerns over the global recession prompted investors to shed risky assets and seek the harbor of the world's most liquid currency.
The MCX-SX February Rupee futures pared most of its losses on in afternoon trade on Friday as the stock market recovered from early lows. However, Dollar’s strength overseas prevented further rise. BSE Sensex close stronger by 187 points from Thursday’s close.
MCX-SX INR February’09 futures prices closed stronger towards 48.94 on Friday. Important supports still exist between 48.70/48.80 followed by 48.10/48.20 ranges. Resistance is at 49.20/49.30 followed by psychological 50.00.
The active MCX-SX Feb’09 Rupee futures registered an open interest of 220829. It marked an increase in volume by 50.28 %. MCX-SX March’09 Rupee futures closed towards 49.01.
INR SPOT: Supports are still holding between 48.60/48.7 levels followed by an important 48.25. Resistances are intact between 49.20/49.30 (Being the horizontal line as seen in the chart). Only a close above which could see weakness coming in the near term towards next resistance range of 49.90/50.00.
