No love for Indian rupee as technicals point to oversold currency

The rupee's rapid fall in August -- its biggest monthly drop in three years -- would indicate that the currency has fallen too far, too fast

India’s rupee, Asia’s worst-performing currency this year, has slumped so much recently that a little respite may be in store.

Technical charts for the dollar-rupee show the pair’s relative strength index (RSI), a widely-followed momentum indicator, surpassed 76 on Monday after the rupee weakened to a new record low. The reading is highest since the spike in May to 77.78, which presaged a 1.5 percent advance in the Indian currency over the next three days.

Source: Bloomberg

The rupee’s rapid fall in August -- its biggest monthly drop in three