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Rupee inches higher, breach of 82.55-82.60 signals trend reversal

By Nimesh Vora

MUMBAI (Reuters) – The Indian rupee was trading marginally higher against the dollar on Wednesday, helped by the relative calm across Asia following the Bank of Japan (BOJ)-induced volatility.

The rupee was at 82.72 to the dollar by 11:08 a.m. IST, compared to 82.7550 in the previous session. The local currency has been in the 82.58-82.89 range over the last three trading sessions.

“Though the (USD/INR) pair is lacking upward momentum, the price structure is upward with clear higher highs and higher lows being formed,” Anindya Banerjee, head research – fx and interest rates at Kotak Securities, said.

“Nevertheless, if prices reverse below 82.55, then the bullish price structure will be negated.”

Asian shares and currencies were mostly rangebound, settling down after the BOJ’s unexpected hawkish turn. The yen was slightly lower after surging almost 4% in the previous session.

U.S. yields were little changed and the dollar…

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