TECHNICAL Impact

TECHNICAL Impact
USD INR (FEB– Expiry)
US dollar is looking weak on charts hence selling is recommended in USD.
Sell around 53.8600 with a SL 54.0000 possible targets of 53.6200/53.5000/53.3300.

EUR INR (FEB – Expiry)
Euro might fall further as technically looking weak.
Sell below 72.0025 with a SL 72.1600 possible targets of 71.8600/71.8025/71.6600.
OR
Buy above 72.1600 with a SL 72.0625 possible targets of 72.3025/72.4000/72.5525.

Currency Headlines
Rupees declines the months low on speculation of FII capital withdrawal.
Indian rupee is hovering near this month’s low as the speculations have increased that FII had started withdrawing funds from Indian markets which has increased the pressure on their currency. The rupee declined 0.4 percent to 53.7050 per dollar. It touched 53.745 earlier, the lowest level since Jan. 29. The currency fell 0.6 percent in the five days through Feb. 8, snapping a four-week advance. Three-month onshore rupee forwards traded at 54.71 per dollar, compared with 54.66 on Feb. 8. Offshore non-deliverable contracts were at 54.54 versus 54.45.

Currency Headlines

Currency Headlines
Rupee Leads Declines in Asian Currencies on Yen, Europe Concerns
Asian currencies fell for a third week amid concern the yen’s slump will trigger a currency war, and after the European Central Bank said the euro’s strength could hamper an economic recovery.
India’s rupee headed for its worst week in 2013 after the government predicted the slowest economic growth in a decade. Taiwan’s dollar slid to a five-month low and South Korea’s won pared a weekly gain after the yen’s plunge to the weakest level since May 2010 fueled speculation policy makers will rein in exchange rates to support exports. ECB President Mario Draghi said the euro’s rally in January may slow growth and a Bank of Japan board member said this week more initiatives are needed to attain its goal of boosting inflation to 2 percent.
“It’s a risk-off situation as we can expect more verbal warning about the yen-Asia crosses given recent statements in Japan,” said Wong Chee Seng, a currency strategist in Kuala Lumpur at Ambank Group. “Concerns about the euro’s strength and debt issues in major economies are also back on the radar.”
The rupee weakened 0.7 percent this week to 53.58 per dollar as of 2:24 p.m. in Mumbai.
Pound Set for Biggest Weekly Gain in Two Years
The pound headed for its biggest weekly advance in two years against the euro amid speculation the Bank of England will refrain from extending its stimulus program in contrast to its European counterpart.
Sterling rose for a third day versus the dollar before U.K. reports next week forecast to show producer prices rose in January and retail sales increased. Future Bank of England Governor Mark Carney said yesterday that current monetary policy may be enough to help the economy, while European Central Bank President Mario Draghi said policy may “remain accommodative.” U.K. government bonds underperformed German bunds this week by the most in a month.
“We might see a stronger sterling against the euro,” said Eimear Daly, a currency-market analyst at Monex Europe Ltd. in London. “We’ve seen a very dramatic move since the start of the year. The market had priced in aggressive easing from Carney and they were probably disappointed from what they saw yesterday. The move was compounded by what we saw from Draghi.”
The pound strengthened 0.2 percent to 85.11 pence per euro at 11:36 a.m. London time, having gained 2.1 percent this week, the most since the period ended Jan. 7, 2011. Sterling rose 0.3 percent to $1.5767.

TECHNICAL INSIGHT USDINR FEB 2013
The pair seems to be range with upward bias.
Buy near 53.50 SL 53.35 TGT 53.75/53.90

EURINR FEB 2013
The pair has shown weakness. Though, buying support has come at lower levels.
Sell near 72.22 SL 72.35 TGT 72/71.86 OR Buy near 71.86 SL 71.7 TGT 72/72.22

GBPINR FEB 2013
The pair can also be considered “Buy on Dips”
Buy near 84.55 SL 84.40 TGT 84.76/85.05

JPYINR FEB 2013
Given uncertainty in USDJPY globally, the pair can have Gap up OR Gap down open. Its better to take any call after watching the 1st hour of trade in USDINR