Rupee Heading to 64.45/Dollar: CLSA

The Indian rupee slipped to 61.55 per dollar on Thursday, its lowest in over five months. On Wednesday, the partially convertible rupee fell 1.07 per cent, its biggest single-day fall in six-and-half months. The selloff came on the back of heavy dollar outflows from the domestic share and debt markets.

The sharp fall in the rupee is worrying because the currency has mostly traded in a range of 59-61 over the last many weeks.

Laurence Balanco of CLSA said the rupee is on the cusp of breaking above its neckline resistance, a level of resistance found on a head and shoulders pattern in technical charts. A move above the neckline (in the case of a head and shoulders top) is considered bullish, but in rupee's case it means further weakness against the dollar.

Mr Balanco says a break above 61.27 will support a minimum upside target of 64.45 in the short-term. The next resistance is the August 2013 highs of 69.26, he added.

However, Moses Harding, group CEO & chief economist at SREI Infrastructure Finance told NDTV that the rupee is unlikely to fall below 62-63 per dollar.

"I agree that beyond 61.45, 62.25 comes into risk, but I think the 63 level is a strong protection," said Mr Harding. "I will stay with the long term range of 58-63 at this point of time," he added.

The rupee ended at 61.22 as compared to its Wednesday's close of 61.55.