Rupee ends weaker on month end dollar demand
Indian rupee ended substantially weaker against dollar on Tuesday, on increased month-end demand for the American currency from importers and banks. Sentiments remained down-beat with private report indicating that demonetisation effect is expected to slow down India’s GDP growth to 7.2% in January-March quarter from 7.6% in the preceding quarter. Though, it expects a recovery thereafter to an average of 7.5% in the second half of 2017 and 7.7% in 2018, supported by a release of pent-up consumption demand with remonetisation, easier financial conditions, pay hikes for government employees and modest external demand. Traders also remained cautious ahead of the release of the gross domestic product (GDP) data on May 31. Besides, US dollar’s gain against other currencies overseas too dragged the rupee down. On the global front, yen strengthened against major counterparts on Tuesday, as investors fret about a Greek bailout and the possibility of an early election in Italy.
USDINR
Support at 64.70 and Resistance at 65.00
Close below 64.70 will take it to 64.40—64.25 mark else could touch its resistance level of 65.00 again.
Fresh buying can be initiated above 65.00 mark.
GBPINR
Support at 83.10 and Resistance at 83.35
Break and sustain below 83.10 will take it to 82.95—82.80 and then to 82.50 mark else could touch its resistance level of 83.35 mark.
Fresh buying can be initiated above 83.35 mark.
EURINR
Support at 72.30 and Hurdle at 72.70
Looks weak and could touch its support level of 72.30. Break and sustain below 72.30 will take it to 72.00—71.80 mark in days to come.
Trade with levels only
JPYINR
Support at 58.25 and Resistance at 58.60
Looks positive and could touch its resistance level of 58.60. Close above 58.60 will take it to 58.75—58.90 and then to 59.10 mark in days to come else could touch its support level of 58.25.
Fresh selling can be initiated below 58.25
More will update soon!!
