FxWirePro: Indian rupee hovers around 3 –month high ahead of RBI interest rate decision

• USD/INR is currently trading at 66.10 marks.
   
• It made intraday high at 66.26 and low at 66.0850 levels.
   
• Intraday bias remains bearish for the moment.  
   
• A daily close below 66.17 will drag the parity down towards 66.02, 65.96 and 65.67 levels thereafter.  
   
• Alternatively, reversal from 66.02 will take the parity up around key resistances at 66.39/66.48/66.86/67.18 levels respectively.
   
• Today RBI will announce interest rate decision at 0530 GMT. This will provide further direction to the parity. Market anticipates 0.25 basis points rate cut to 6.50%.
   
• Moreover, yesterday India released Markit manufacturing PMI with positive numbers at 52.4 m/m vs 51.1 m/m previous release.

Positioning is inconclusive at this point, with prices offering no clear cut signal to initiate a long or short trade. We will continue to remain on sidelines for the time being.