Rupee strengthens for second straight session
Extending its gains for the second straight session, Indian rupee strengthened on Wednesday due to sustained selling of the US currency by exporters and banks. Local currency got some support with Prime Minister Narendra Modi reviewing the progress of the government’s agenda to curb black-money and tax evasion as well as the roll out of the Goods and Services Tax (GST). Some support also came with the report that the Reserve Bank of India (RBI) is expected to hold the key rate at its monetary policy review next month but may opt for a 25 bps cut in August. However, dollar strengthened against some currencies overseas capped the rupee gains. On the global front, dollar inched up against most major currencies on Wednesday, as investors eyed a U.S. Federal Reserve statement later in the day for guidance on whether bets for a June interest rate hike are justified.
USDINR (May)
Support at 63.90 and Resistance at 64.60
Looks positive and could touch its resistance level of 64.60. Break and sustain above 64.60 will take 65.00—65.30++ mark else it could touch its support level of 63.90 again.
Fresh selling can be initiated below 63.90.
GBPINR (May)
Support at 82.80 and Resistance at 83.50
Close below 82.80 will take it to 82.50---82.30 and then to 82.00 mark else could touch its resistance level of 83.50 again.
Fresh buying can be initiated above 83.50
EURINR (May)
Support at 70.30 and Resistance 70.80
Close below 70.30 will take it to 69.80---69.60 and then to 69.30 mark else could touch its resistance level of 70.80 mark.
Fresh buying can be initiated above 70.80
JPYINR
We recommended selling in JPY/INR at 57.45, it crashed and made low of 57.14.
Now what to expect??
Support at 57.10 and Resistance at 57.50
Below 57.10 we can expect more downside panic 56.80---56.50 mark else could touch its resistance level of 57.50 again.
Fresh buying can be initiated above 57.50
More will update soon!!
