Currency Report 12th Feb 2018
Indian rupee ended at a 2-week low against US dollar on Friday, following steady uptick in dollar demand from importers and banks. Cautiousness remained in the market with the report that foreign portfolio investors have turned wary on Indian shares again owing to the recent global market sell-off triggered by rising bond yields in developed markets including in the US and the euro zone. FPIs have sold shares worth Rs 3,665.6 crore in the domestic stock market (including provisional data of Wednesday and Thursday) in February after pumping close to Rs 13,000 crore into Indian equities in January. Investors failed to draw any sense of relief with private report highlighting that fears of the Reserve Bank of India going for a rate hike are overdone and there is still room for a 25 bps rate cut in the August monetary policy review, provided rains are normal. Moreover, sharp fall in equities too affected the rupee.
On the global front, the dollar climbed as the US government reopened following a five-hour shutdown after the House of Representatives approved a budget which will keep it running until the end of next month.
USDINR
Support at 64.30 and Resistance at 64.60
Below 64.30 panic likely to continue till 64.10—64.00 else could touch its resistance level of 64.60
Fresh buying can be initiated above 64.60
Trade with levels only.
GBPINR
Below 89.20 panic likely to continue till 88.90—88.80 else could touch its resistance level of 89.50
Fresh buying can be initiated above 89.50
EURINR
Support at 79.00 and Resistance at 79.30
Trading in range either side breakout will decide further
JPYINR
Support at 59.10 and Resistance at 59.30
Above 59.30 rally likely to continue till 59.60—59.80 else could touch its support level of 59.10
Fresh selling can be initiated below 59.10
More Will Update Soon!!
