Rupee appreciates against the US dollar on Tuesday
Indian rupee appreciated on Tuesday due to sustained selling of the US currency by exporters and banks. The domestic currency was in the positive terrain from the very beginning supported by the weak dollar index against other major currencies.
Sentiments remained positive with SBI’s research report Ecowrap, which said that the Government is likely to make sweeping recast of direct taxes in the ensuing Budget to give a boost to the economy following demonetisation. Some support also came with the report that the government is likely to set fiscal deficit target in the range of 3.3-3.4 percent of GDP for the financial year 2017-18 in the upcoming Budget or will target a fiscal deficit of 3.5 percent of GDP -- same as that of 2016-17.
On the global front, dollar steadied on Tuesday, recovering from a dip on fears that U.S. President Donald Trump's focus on protectionism over fiscal stimulus suggested his administration might be content to gain a competitive advantage through a weaker currency.
Finally, the rupee ended at 68.14, 7 paise stronger from its previous close of 68.21 on Monday. The currency touched a high and low of 68.20 and 68.07 respectively.
The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.15 and for Euro stood at 73.23 on January 24, 2017. While the RBI’s reference rate for the Yen stood at 60.27, the reference rate for the Great Britain Pound (GBP) stood at 85.14.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
USD-INR
Support at 68.00 and resistance at 68.30
Looks positive and could test its resistance level of 68.30. Further upside rally will see if close above 68.30 else could test its support level of 68.00
Fresh selling can be initiated below 68.00
GBP-INR
Support at 85.00 and resistance at 85.50
Break and sustain above 85.50 will take it to 85.80---86.00 else could touch its support level of 85.00 again.
Looks weak if closes below 85.00 mark.
EUR-INR
Support at 73.00 and resistance at 73.40
Break and sustain below 73.00 will take it to 72.70—72.45 else it could touch its resistance level of 73.40 again.
Fresh buying can be initiated above 73.40
JPY-INR
We clearly indicated JPYINR looks weak below 60.20 it crashed and made low of 59.94.
Now what to expect ??
Support at 59.90 and resistance 60.20
Break and sustain below 59.90 will take it to 59.75—59.60 and then to 59.45 else could touch its resistance level of 60.20
Fresh buying can be initiated above 60.20
Trade with levels only
