``Rupee today strengthened with the early gains in the Indian share market raised hopes of easing risk aversion which may lead to more capital inflows into the country. Rupee weakened yesterday as large corporate bought dollars to fund purchase of a stake in an overseas firm while losses in other regional peers piled pressure on the local unit,`` said SMC Global, a leading broking firm.
``The monthly wholesale price inflation data to be released next week is likely to provide a direction to the rupee. Losses in other regional currencies also weighed on the rupee. Strong Chinese economic data stoked worries yesterday of more policy tightening, hurting Asian stocks but failing to lift currencies in the region. In the long run rupee seems to be strong against dollar but weighed down by euro and sterling,`` it added.
``On the daily chart of USD/INR (Spot), rupee is expected to move sideways to down. Yesterday, it closes at 45.50 and reached at 45.62, whereas USD/INR (March) shown the high of 45.69 after opening at 45.49. Today the nearly resistance is shown at 45.53/54 and the close support is at 45.24. It is expected that if rupee will break this level of support it will target next to 45,`` it said. SMC doesn`t recommend any strategy today as the trend is sideways.
