Currency markets witnessed a slight and short-lived recovery last week after having fallen sharply against the US dollar in the week earlier. The euro bounced back above 1.19 and the Dollar Index fell below 92 initially last week but then remained stable for the rest of the week.
The pull-back in the dollar index is likely to be short-lived as it seems to be getting strong support at 91.5. The dollar can regain strength in the coming days and move up further which, in turn, could drag the euro lower. As a result, the chances are high for the Indian rupee also to remain under pressure below 74.
Dollar gets support
The US Dollar Index (91.81) fell from the high of 92.37 on Monday last week and then had come down from there. However, the index is getting support at 91.50 and is managing to hold well above it. 91.50 and 91.30-91.20 are important supports to watch this week. As long as the index stays above these supports, the outlook is bullish. A rise to…