Rupee erases most of the early losses; ends marginally weaker against dollar
Indian rupee, after making a weak start, gave away most of its losses and concluded marginally lower against dollar on Wednesday, due to fresh demand for the American currency from banks and importers. Sentiments remained downbeat with the inclusion of Chinese mainland stocks to the MSCI index, which could lead to hundreds of billions of dollars worth of share purchases, shrinking shares of other emerging markets, including India. Some concerns also came with CARE Ratings' latest report that the fiscal deficit estimate for 2017-18 is set to rise to 3.35% from present 3.24% of GDP, impacted by Rs 17,780 crore shortfall in non-tax revenue (NTR) target from telecom services. Besides, a fragile domestic equity market too affected the rupee, but dollar’s weakness against some currencies overseas kept the fall to a minimum. On the global front, dollar pulled back from one-month highs against a basket of currencies on Wednesday as a tumble in crude oil prices pushed down US yields, while the pound wobbled near a two-month low after Bank of England Governor Mark Carney shot down hopes of a British interest rate hike.
USDINR (June)
Support at 64.30 and resistance at 64.60---64.75
Trading in range either side breakout with volumes will decide further.
GBP-INR
Support at 81.50 and Resistance at 82.05
If unable to breach its resistance level of 82.05 then it can touch its support level of 81.50 again. Further downside panic will see below 81.50 mark.
Fresh buying can be initiated only above 82.05
EURINR
Support at 71.95 and resistance 72.40
Trading in range either side breakout with volumes will decide further.
JPYINR
Support at 57.80 Resistance at 58.35
Trading in range either side breakout with volumes will decide further.
More will update soon!!
