Rupee trading low, time to change trading strategies

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Good time to sell short metals
Indian rupee reported losses against the dollar in late noon trade on Monday mainly on weak Asian currencies. High sell off in world equities, and progression seen in the dollar in overseas market contributes to the fall in rupee.

The partially convertible rupee was at 44.87 a dollar at 2.45 p.m., compared with previous close of 44.72 a barrel.

Experts hold the opinion that the outlook for rupee may not be positive because of low enthusiasm of the Sensex in the last few sessions. Even the fundamental numbers of IIP was not encouraging.

Dollar is trading on the higher side today, so probably tomorrow morning will provide an opportunity to change your trading positions.

As price of dollar and metals move in different direction, you could see some fluctuation in metal prices as well.

It's a good time to sell short some of the commodities like gold, silver or base metals.

Silver has already been falling so its outlook is weak compared to other metals, therefore you could see further fall due to depreciation in rupee.

This is one of the key fundamentals for short term correction so other fundamentals should be kept in mind before making any buy/sell decision.

OneIndia Money

Read more about: gold, dollar, silver
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