Currency Headlines
India Cuts Key Rate to Spur Growth as Inflation Cools
India lowered interest rates for the first time since April and cut the amount of deposits lenders must set aside as reserves, easing policy to revive growth as inflation cools and the government curbs the budget deficit.
The Reserve Bank of India reduced the repurchase rate to 7.75 percent from 8 percent. Governor Duvvuri Subbarao also cut the cash reserve ratio to 4 percent from 4.25 percent, effective Feb. 9, adding 180 billion rupees ($3.4 billion) into the banking system. Growth will be 5.5 percent in the year through March 2013, below an earlier estimate of 5.8 percent, the Reserve Bank said. That would be the slowest since 2002-2003. The prediction for benchmark inflation was cut to 6.8 percent from 7.5 percent.
Dollar Drops 2nd Day Versus Yen Before Fed Policy Meeting
The dollar weakened for a second day against the yen as investors pared expectations that the Federal Reserve will signal a change to its asset-buying program at the end of a two-day meeting tomorrow.
The U.S. currency fell against most of its 16 major counterparts before a report today that economists said will show confidence among U.S. consumers declined this month. South Korea’s won posted its biggest gain in more than four months, snapping a four-day drop. New Zealand’s dollar rose after a report showed the nation’s annual trade deficit narrowed. The euro slipped against all of its 16 major peers.
The dollar weakened for a second day against the yen as investors pared expectations that the Federal Reserve will signal a change to its asset-buying program at the end of a two-day meeting tomorrow.
The U.S. currency fell against most of its 16 major counterparts before a report today that economists said will show confidence among U.S. consumers declined this month. South Korea’s won posted its biggest gain in more than four months, snapping a four-day drop. New Zealand’s dollar rose after a report showed the nation’s annual trade deficit narrowed. The euro slipped against all of its 16 major peers.
TECHNICAL INSIGHT USDINR FEB 2013
The pair has shown strength at lower levels. Can be considered BUY on dips
Buy near 53.80 SL 53.60 TGT 54/54.25
EURINR FEB 2013
EURUSD has shown strength. This should be seen in EURINR also.
Buy near 72.35 SL 72.23 TGT 72.57/72.85
GBPINR FEB 2013
GBPINR looks to be on pull back rally. This pair can also be considered Buy on dips.
Buy near 84.72 SL 84.55 TGT 85/85.35
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
India Cuts Key Rate to Spur Growth as Inflation Cools
India lowered interest rates for the first time since April and cut the amount of deposits lenders must set aside as reserves, easing policy to revive growth as inflation cools and the government curbs the budget deficit.
The Reserve Bank of India reduced the repurchase rate to 7.75 percent from 8 percent. Governor Duvvuri Subbarao also cut the cash reserve ratio to 4 percent from 4.25 percent, effective Feb. 9, adding 180 billion rupees ($3.4 billion) into the banking system. Growth will be 5.5 percent in the year through March 2013, below an earlier estimate of 5.8 percent, the Reserve Bank said. That would be the slowest since 2002-2003. The prediction for benchmark inflation was cut to 6.8 percent from 7.5 percent.
Dollar Drops 2nd Day Versus Yen Before Fed Policy Meeting
The dollar weakened for a second day against the yen as investors pared expectations that the Federal Reserve will signal a change to its asset-buying program at the end of a two-day meeting tomorrow.
The U.S. currency fell against most of its 16 major counterparts before a report today that economists said will show confidence among U.S. consumers declined this month. South Korea’s won posted its biggest gain in more than four months, snapping a four-day drop. New Zealand’s dollar rose after a report showed the nation’s annual trade deficit narrowed. The euro slipped against all of its 16 major peers.
The dollar weakened for a second day against the yen as investors pared expectations that the Federal Reserve will signal a change to its asset-buying program at the end of a two-day meeting tomorrow.
The U.S. currency fell against most of its 16 major counterparts before a report today that economists said will show confidence among U.S. consumers declined this month. South Korea’s won posted its biggest gain in more than four months, snapping a four-day drop. New Zealand’s dollar rose after a report showed the nation’s annual trade deficit narrowed. The euro slipped against all of its 16 major peers.
TECHNICAL INSIGHT USDINR FEB 2013
The pair has shown strength at lower levels. Can be considered BUY on dips
Buy near 53.80 SL 53.60 TGT 54/54.25
EURINR FEB 2013
EURUSD has shown strength. This should be seen in EURINR also.
Buy near 72.35 SL 72.23 TGT 72.57/72.85
GBPINR FEB 2013
GBPINR looks to be on pull back rally. This pair can also be considered Buy on dips.
Buy near 84.72 SL 84.55 TGT 85/85.35
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