Currency Report 11th January 2018
Halting a two-day slide, Indian rupee ended stronger against dollar on Wednesday, due to increased selling of the American currency by exporters and banks. Traders took support with the World Bank report projecting India’s growth rate to 7.3% in 2018 and 7.5% for the next two years. It said that with an ambitious government undertaking comprehensive reforms, India has enormous growth potential compared to other emerging economies. Besides, weak dollar overseas largely supplemented strength to the local currency. However, gains were limited as some concerns remained among the investors with chief statistician TCA Anant’s statement that lower-than-expected inflation is estimated to pull down nominal GDP growth to 9.5% in FY18, against the budgeted 11-11.5%. He further added that this will impact the final projection of the FY18 fiscal deficit (expressed as a percentage of nominal GDP).
On the global front, dollar extended losses against yen on Wednesday after the Bank of Japan's move to trim Japanese government bond (JGB) purchases in the previous session triggered speculation that it could begin tapering its massive, ultra-easy monetary stimulus.
USDINR
Support 63.70 and Resistance at 64.00
Below 63.70 panic remain continue till 63.50—63.40 mark else could touch its resistance level of 64.00 mark.
Fresh buying can be initiated above 64.00
GBPINR
Support at 86.10—86.00 and Resistance at 86.50
Break and sustain above 86.50 will take it to 86.80—87.00++ mark else could touch its support level of 86.10—86.00
Fresh selling can be initiated below 86.00
EURINR
Support at 76.10 and Resistance at 76.45
Above 76.45 rally remain continue till 76.70—76.80++ mark else could touch its support level of 76.10
Fresh selling can be initiated below 76.10
JPYINR
Hurdle at 57.30, Above 57.30 rally remain continue till 57.60—57.80++ mark else could touch its support level of 57.00.
Fresh selling can be initiated below 57.00
More will update soon!!!
