TECHNICAL Impact
USD INR (FEB– Expiry)
US dollar is looking strong on charts hence buying is recommended in USD.
Buy around 54.5000 with a SL 54.3500 possible targets of 54.7500/54.8500/54.9900.
EUR INR (FEB – Expiry)
Euro might fall further as technically looking weak.
Sell below 72.1125 with a SL 72.2100 possible targets of 72.0025/71.8800/71.7600.
OR
Buy above 72.2100 with a SL 72.1125 possible targets of 72.3325/72.4325/72.5500.
Currency Headlines
Yuan falls on speculations that Fed might cut monetary stimulus.
Yuan is hovering near two months low as the speculations have increased that the Federal Reserve might cut the monetary stimulus which has increased the pressure on high yield assets. The Dollar Index rose 0.75 percent yesterday, the most since July. The People’s Bank of China cut the daily yuan fixing by 0.07 percent to 6.2846 per dollar today. The yuan weakened 0.09 percent to 6.2433 per dollar, prices from the China Foreign Exchange Trade System show. It touched 6.2454 on Feb. 19, the lowest level since Dec. 14. Spot prices are allowed to diverge a maximum 1 percent from the reference rate. Westpac expects the currency to appreciate to 6.15 by the end of June. In Hong Kong’s offshore market, the currency fell 0.1 percent to 6.2400 per dollar
