Currency Report 13th December 2017
Indian rupee pared some of its early losses but still ended marginally weaker against the American currency on Tuesday, due to fresh dollar demand from banks and importers. Investors even overlooked the UN DESA's World Economic Situation and Prospects 2018 report, which said that despite a slowdown observed in early 2017, the outlook for India remains positive, underpinned by strong private consumption, robust public investments and structural reforms. Besides, massive losses in domestic equity markets too weighed on the rupee, but dollar’s reduced clout against other currencies overseas helped to cap the losses.
Consumer price inflation (CPI), or retail inflation as it is better known, for the month of November stood at 4.88 per cent with comparison to 3.63 per cent during the corresponding period last year.
The government data revealed on Tuesday shows that the inflation rate has surged to 15-month high. The previous high was recorded at 5.05 per cent in August last year. November's inflation numbers also breached the RBI's (Reserve Bank of India) mid-term target of 4 per cent.
On the global front, dollar declined against most major currencies as the US Federal Reserve geared up for a two-day policy meeting at which it is widely expected to raise interest rates for the fifth time since late 2015.
USDINR
Support at 64.40 and Resistance at 64.70
Above 64.70 rally remain continue till 65.00—65.20++ mark else could touch its support level of 64.40 mark.
Fresh selling can be initiated below 64.40
Trade with levels only.
GBPINR
Support at 86.00—85.95 and Resistance at 86.40
Break and sustain below 85.95 will take it to 85.70—85.50 mark else could touch its resistance level of 86.40.
Fresh buying can be initiated above 86.40.
EURINR
Support at 75.85 and Resistance 76.20
Break and sustain above 76.20 will take it to 76.60—76.80 mark else could touch its support level of 75.85
Fresh selling can be initiated below 75.85
JPYINR
Support at 56.90 and resistance at 57.15
Break and sustain above 57.15 will take it to 57.50—57.80+++ mark, else could touch its support level of 56.90.
Fresh selling can be initiated below 56.90
More will update soon!!!
