Rupee appreciates 4 paise to 66.47 against dollar

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The rupee appreciated 4 paise to 66.47 against the US dollar in early trade on Friday, as the dollar faltered against major global currencies following weak US GDP numbers, and data showing an increase in jobless claims in the world's largest economy. The data raised hopes that the US Fed would refrain from hiking interest rate in the June policy review, offering some respite to emerging market (EM) currencies.The domestic currency had settled at 66.51 on month-end demand for the American currency from importers despite lower greenback overseas.
The dollar index, which tracks the movement of dollar against a basket of six major world currencies, fell 0.29 per cent to 93.48. The yen surged to an 18-month high against the dollar after the Bank of Japan in its policy review on Wednesday did not announce any expansion in its monetary stimulus. The Japanese currency was trading 0.72 per cent higher at 107.32 against the US dollar. The Korean won, The Malaysian ringgit and the Singapore dollar rose 0.42 per cent, 0.39 per cent and 0.33 per cent, respectively. The Chinese yuan gained 0.23 per cent against the greenback.
While all major Asian currencies have advanced against the US dollar in 2016, the rupee remained an exception. It has depreciated 0.55 per cent against the US currency.
I do not see much appreciation below 66.20 because we see buying coming in from interested sources and on the upside. I do not see it going beyond say 66.80 as well because there is a whole lot of resistance. On the technical side, I think on the weekly charts dollar-rupee has now come to the lower channel levels. So it has been continuing its upward move for the last three-odd weeks."

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