USD/INR pair touched its lowest level in the last eleven months and lost around 1.85 percent in the previous week. The pair is in firm grip of bears as it has fallen for the third straight week and is trading well below its support levels
sharp upside in the currency was capped due to estimates of dollar buying by the Reserve Bank of India (RBI) and dollar demand from oil importers. Also, unfavorable retail inflation data and decline in industrial production restricted positive movement in the currency.
The Indian Rupee touched a weekly high of 58.57 and closed at same levels .Trading strategy for the coming week would be to buy on declines at around 58.20 levels keeping a stop loss of 57.90 with a target of 59.00.