Currency Report 27 - January 2017
Rupee ends strong on fresh dollar selling by exporters
Indian rupee ended stronger against dollar on Wednesday, on the back of dollar sales by exporters and bank due to weakness of the Greenback in overseas markets. Traders took some encouragement with report that Donald Trump and Narendra Modi have discussed opportunities to strengthen the partnership between the United States and India in broad areas such as the economy and defence.
Some support also came with a private report’s statement that the Indian government is expected to continue with fiscal consolidation and deliver a popular, but not a populist budget with a fiscal deficit target of 3% in 2017-18. Besides, smart rally in the local equity markets too supported the local unit. On the global front, dollar edged lower against yen as Japan trade showed a surprise gain on exports and investors noted the most recent tweet by President Donald Trump signaled he would sign an executive order on Wednesday to build a wall on the border with Mexico.
Finally, the rupee ended at 68.07, 7 paise stronger from its previous close of 68.14 on Tuesday. The currency touched a high and low of 68.19 and 68.05 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.15 and for Euro stood at 73.09 on January 25, 2017. While the RBI’s reference rate for the Yen stood at 59.98, the reference rate for the Great Britain Pound (GBP) stood at 85.31.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
USDINR
USD-INR………forming symmetrical triangle on daily chart.
Support at 68.40 and resistance at 68.60
Either side breakout with volume will decide further.
GBPINR
Support at 85.50 and resistance at 86.20
Break and sustain above 86.20 will take it to 86.50--86.80 and then to 86.95+ mark else could touch its support level of 85.50
Looks weak if closes below 85.50
EURINR
Support at 73.00 and resistance at 73.25
Break and sustain below 73.00 will take it to 72.90—72.75 and then to 72.55 else could touch its resistance level of 73.25
Fresh buying can be initiated above 73.25
JPYINR
Support at 59.40 and resistance 59.80
Break and sustain below 59.40 will take it to 59.10—59.00 and then to 58.70 else could touch its resistance level of 59.80
Fresh buying can be initiated above 59.80
Trade with levels only
More will update soon!!
