Rupee is set for pullback after August surge, technicals suggest

India’s rupee looks set to weaken after its rally in August pushed it to the top of the emerging Asian currency charts, according to technical indicators. 

The dollar-rupee’s relative strength index dropped to 22.8 last week, the lowest level in 11 months, well below the level of 30 that typically indicates an asset is set to change direction. When the reading slipped to 19.9 last September, the rupee declined about 0.6% over the following month.

The rupee powered ahead in August, gaining almost 2%, as a flurry of initial public offerings lured inflows, and speculation grew that the central bank