Dollar/Rupee jump towards 67.35 as FOMC minutes hint June rate hike
Dollar/rupee open positive around 67.2325 levels as dollar rose sharply to
seven-week high after Federal Reserve's April meeting minutes hinted at a
interest rate hike in June.
Dollar index, which tracks the strength of the greenback against
a basket of six currencies, breached seven-week high of 95.23 and settled at
95.20 compared to 94.53 at close New York time.
The minutes of the Fed's Apr 26-27 meeting showed that officials
said an interest-rate hike is possible in June if incoming data showed an
improving economy.
Fed officials also sought to push back against market
expectations that a move at its next meeting was unlikely, according to the
minutes.
Technical levels -
USDINR having strong resistance at 67.30 on closing basis and pair would
need to break above 67.30 on closing basis in order to test 67.70-68.00, else
any rise towards 67.25-67.30 could attract selling activities for the target of
66.90-66.70
Dollar index (95.17), sustain trade above 95.25 will expect to
test 95.50-95.78. Immediate support is 94.80. A hint for an interest rate hike
in June may support positive move in dollar index.
EUR/Rupee
EUR/INR fell sharply on Wednesday, plunging to its lowest level
in three weeks, as the Federal Reserve sent strong indications that it will
raise short-term interest rates when it meets next in June if the domestic
economic outlook improves as expected.
EURINR witnessed mild recovery from the day low 75.5025 and
settled at 75.74 levels. On the above EOD chart pair is trading on verge of
rising channel and a break below the lower trend line could point for the
downside target of 74.80-74.50, else failure of the break only could witnessed
pullback towards 76.00-76.35.
GBP/Rupee
The pound was lower against the broadly stronger dollar on
Wednesday, shrugging off a solid U.K. jobs report as investors’ reassessed
prospects that the Federal Reserve would soon raise interest rates.
The Office for National Statistics reported that the claimant
count, which measures the number of people receiving unemployment benefit, fell
by 2,400 in April, against expectations for an increase of 4,300.
GBP-INR has made impressive recovery from the low of 96.62 and
tested 97.55 before closing at 97.47. A long bullish candle stick with break
out of near term resistance 97.15 is indicating for momentum upside move in
GBPINR.
Hence, any dip towards 97.00-96.90 is expect to give buy
opportunity for the target 97.50-97.80
Japanese Yen/Rupee
Yen held gains in Asia on Thursday after a second straight
unexpected gain in key data with core machinery orders up sharply and as
investors mulled the minutes of the Federal Reserve overnight pointing to a
near-term rate hike.
JPYINR was able to gain 0.27% and settled at 61.3650
levels. Intraday price
action resulted in formation of Hammer candle stick which is indicating for
bearish trend reversal.
Further, JPYINR would need to trade below 60.90 in order
to test 60.70-60.50 and below
Major Economic Data & Events Schedule today
Time
|
Currency
|
Economic Indicators
|
Forecast
|
Previous
|
Possible Impact
|
10:00am
|
JPY
|
All Industries Activity m/m
|
0.70%
|
-1.20%
|
Positive
|
1:30pm
|
EUR
|
Current Account
|
19.6B
|
19.0B
|
Negative
|
2:00pm
|
GBP
|
Retail Sales m/m
|
0.60%
|
-1.30%
|
Positive
|
5:00pm
|
EUR
|
ECB Monetary Policy Meeting Accounts
|
-
|
-
|
-
|
6:00pm
|
CAD
|
Wholesale Sales m/m
|
0.50%
|
-2.20%
|
Positive
|
USD
|
Philly Fed Manufacturing Index
|
3.20
|
-1.60
|
Positive
|
|
USD
|
Unemployment Claims
|
276K
|
294K
|
Positive
|
|
6:45pm
|
USD
|
FOMC Member Fischer Speaks
|
-
|
-
|
-
|
7:30pm
|
USD
|
CB Leading Index m/m
|
0.40%
|
0.20%
|
Positive
|
8:00pm
|
USD
|
FOMC Member Dudley Speaks
|
-
|
-
|
-
|
10:30pm
|
GBP
|
MPC Member Vlieghe Speaks
|
-
|
-
|
-
|
