Currency Headlines
Yuan falls on anticipation of their central bank interference.
Yuan is hovering near one week low as the speculations have increased that the Peoples Bank of China might have entered to devalue their currency. Yuan rallies were hurting exporters which might have compelled the policy makers to devalue their currency. The yuan rose as much as 0.28 percent today to 6.2277 per dollar in Shanghai, exceeding today’s reference rate of 6.2906 by the maximum 1 percent allowed by the People’s Bank of China. The currency subsequently fell to 6.2558, 0.17 percent weaker than yesterday’s closing level and the lowest it has been since Dec. 4, before closing little changed at 6.2460. In Hong Kong’s offshore market, the yuan declined 0.2 percent to 6.2245 per dollar
Won rises on U.S budget optimism.
South Korean’s won is hovering near fifteen months high as Federal Reserve might come up with another monetary easing round which might support the demand of the high yield assets. U.S policy makers might come up with approved budget from opposition which might support the demand of the riskier assets. The won rose for a third day, appreciating 0.2 percent to 1,077.50 per dollar. The currency touched 1,076.96 earlier, the strongest level since Sept. 9, 2011. The yield on South Korea’s 2.75 percent bonds due December 2015 was steady at 2.84 percent, Korea Exchange Inc. prices show. The one-year interest-rate swap was little changed at 2.80 percent.
TECHNICAL INSIGHT USD INR (DEC – Expiry)
US dollar looking weak on charts, hence selling is recommended.
Sell below 54.4200 with a SL 54.52000 possible targets of
54.3000/54.2000/55.1100.
EUR INR (DEC – Expiry)
Euro is technically strong, hence buying is recommended.
Buy above 70.6500 with a SL of 70.5700 for possible targets of 70.7800/70.9000/70.9900.
JPY INR (DEC – Expiry)
Yen looking weak on charts, hence selling is recommended.
Sell below 65.9475 with SL of 66.0400 with possible targets of 65.8000/65.7050/65.5600.
GBP INR (DEC – Expiry)
Pound is looking weak hence selling is recommended.
Sell below 87.5500 with a SL of 87.6500 targets would be 87.4000/87.3275/88.2200.