The rupee hit 13-month lows while bonds plunged as markets in the region tumbled on fears about the global economy, raising doubts about whether India can afford to cut interest rates given risks that such a move could trigger foreign outflows. The Indian currency ended the day at 63.41, gaining 1.21% from its previous close of 62.65. The dollar index against six major currencies closed at 87.94, losing 0.53% from its previous close of 88.43,'' said ICICIdirect in its report.
ICICIdirect expects the US dollar to garner buying support on declines against the rupee. ''Utilise declines in the USD/INR December contract to buy. Buy USD/INR December futures in the range of 63.60-63.70 with target 62. 20-64.30.''
''In the currency futures market, the most traded dollar-rupee December contract on the NSE closed at 63.77. The December contract open interest was up 0.44% from the previous day,'' the broking firm added.