Indian rupee expected to strengthen further against dollar

The Indian rupee has shown strength against the dollar for the second week in a row, closing at 85.47. The currency has gained support at 86, with analysts predicting it could rise further to levels around 85.15 or even 84.90. The dollar index has dropped from a high of 104.68 to close at 104.04. This decline may cause additional pressure on the dollar, with potential falls to 103 or even lower in the upcoming weeks. Resistance is expected around 104.85. The euro is currently holding its ground, trading at 1.0828 after bouncing back from a low of 1.0733. If it breaks above 1.0850, the euro could strengthen further, potentially reaching 1.11. A decline below 1.0730, however, would suggest a bearish outlook. In US Treasury markets, the 10-Year Yield has reversed from highs above 4.35 percent. If it falls below 4.2 percent, it could drop to 4.1 percent, a critical support level. A break below 4.1 percent could lead to further declines, potentially reaching 3.8-3.7 percent.