Currency Report 16th January 2018
Indian rupee shed most of its early gains but still ended higher against the American currency on Monday, due to selling of the US currency by exporters and banks. Sentiments remained positive as India's inflation on wholesale level eased in the month of December, supported by lower food articles and minerals prices. Also, industrial production growth accelerated to 25-month high of 8.4% in November 2017, as compared to 5.1% in November 2016, on the back of robust performance of manufacturing and capital goods sectors. Besides, the dollar's weakness against some currencies overseas along with good gains in local equities largely supported the rupee trade. However, the local currency trimmed most of its initial gains, as some concern came with data showing that India’s retail inflation or Consumer Price Index (CPI) shot up to a 17-month high of 5.2% in the month of December 2017, as against 3.41% growth in December 2016.
On the global front, euro held at three-year highs against dollar on Monday after last week’s surge, its rise fueled by growing expectations that the European Central Bank will tighten monetary policy, while the dollar weakened further.
USDINR
Support at 63.45 and Resistance at 63.75
Break and Sustain above 63.75 will take it to 63.90—64.10 mark else could touch its support level of 63.45
Fresh selling can be initiated below 63.45
Trade with levels only.
GBPINR
Support at 87.50 and Resistance at 87.90
Break and sustain above 87.90 will take it to 88.30—88.45 mark else could touch its support level of 87.50
Fresh selling can be initiated below 87.50
EURINR
Support at 77.80 and Resistance at 78.20
Break and sustain above 78.20 will take it to 78.50—78.70 else could touch its support level of 77.80
Fresh selling can be initiated below 77.80
JPYINR
Hurdle at 57.50, above 57.50 rally will remain continue till 57.80—58.00++ mark.
Support intact at 57.30
More will update soon!!!
