USD/INR has broken crucial resistance area of 64.60 - 70
The pair has broken short trend line resistance started from Nov 2016 and 50% retracement level between the September high to January low on back of the risk aversion due to PNB fraud.
The pair is expected to be in sell on rally phase at every rise near 65.20, 65.50 and 65.90 levels as India's economic growth is expected to continue in the current year.
The recovery in IIP data of December will augur well for the fiscal third-quarter gross domestic product (GDP) data due to be released on 28th February.
Retail inflation has slowed to 5.07% in January, signaling that the Indian economy is stabilizing.
Once risk aversion environment settles down in the near future we expect the pair to again trade near 64 levels and below.