Rupee appreciates for fourth consecutive session
Appreciating for fourth consecutive session, Indian rupee ended stronger against dollar on Monday on increased selling of US currency by banks and exporters. Local currency got some support with Union Finance Minister Arun Jaitley’s statement that the implementation of the Goods and Services Tax (GST), along with demonetisation will bring more revenues as far as states and the central government are concerned and enlarge the size as far as the formal economy is concerned. Besides, dollar weakness against other currencies overseas, barring yen, too gave the rupee more muscle.
However, there was some cautiousness too with CRISIL in its latest report stated that the fiscal deficit target of 3 percent for 2017-18 will be hard to hold as the debt dynamics of the country show stickiness. On the global front, dollar slipped against a basket of some currencies overseas after Treasury yields declined on data showing the US economy growing more slowly than expected.
Finally, the rupee ended at 67.95, 8 paise stronger from its previous close of 68.03 on Friday. The currency touched a high and low of 68.08 and 67.85 respectively.
The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.04 and for Euro stood at 72.96 on January 30, 2017. While the RBI’s reference rate for the Yen stood at 59.38, the reference rate for the Great Britain Pound (GBP) stood at 85.51.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
USDINR
We clearly indicated USDINR looks weak below 68.20 …it crashed and exactly low of 68.02
Now what to expect??
Below 68.00 panic likely to remain continue till support level of 67.90
Break and close below 67.90 will see more downside panic in it else it could test its resistance level of 68.20 again.
Fresh buying can be initiated above 68.20
GBPINR
We recommended GBPINR looks weak below 85.50…it made low of 85.16
Now what to expect??
Support at 85.00 and Resistance at 85.35
Break and sustain below 85.00 will take it to 84.70---84.40 else could touch its resistance level of 85.35 again.
Fresh buying above 85.35 only.
EURINR
Too recommended EURINR looks weak below 73.10 it made low of 72.84.
Now what to expect??
Support at 72.75 and Resistance at 73.00
Break and sustain below 72.75 will take it to 72.50---72.20 else could touch its resistance level of 73.00
Fresh buying can be initiated above 73.00
Trade with levels only
JPYINR
Support at 59.90 and resistance 60.10
Break and sustain below 59.90 will take it to 59.70—59.60 and then to 59.45 else could touch its resistance level of 60.10
Fresh buying can be initiated above 60.10
Trade with levels only
More will update soon!!
