2012.05.30 05:49:19 MARKET TALK: USD/INR Up Sharply; 56.20 Next Cap Tipped - Dealer

0349 GMT [Dow Jones] The USD/INR is sharply higher as investor sentiment in the region remains firmly risk-off due to rising concerns over the health of Spanish banks. The pair is at 56.04 vs 55.67 late Tuesday in Asia. A dealer with a private bank sees the next cap for the pair at 56.20. Traders are eyeing possible intervention from the RBI, but given that Wednesday's move is in line with peers, the central bank may not intervene heavily, he says. The EUR/USD's breach of the 1.2500 support was crucial and few traders are willing to bet on a cap for the USD/INR, the dealer adds.(sudeep.jain@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires May 29, 2012 23:49 ET (03:49 GMT)