Currency Headlines
Dollar Rises to 3-Week High Versus Euro on Debt
Concern
The dollar rose to its strongest level in almost three weeks
against the euro on speculation U.S. policy makers will struggle
to reach agreement on raising the nation’s debt limit,
underpinning demand for the safest assets.
Japan’s yen appreciated against all its 16 major counterparts
amid concern the U.S. Treasury will exhaust what it called
“extraordinary” measures to keep funding the government by
late February or early March after the nation hit its $16.4 trillion
debt ceiling on Dec. 31. The dollar rose the most versus the
higher-yielding South African rand after the International
Monetary Fund said yesterday the U.S. ought to raise the debt
ceiling “expeditiously.”
“All the way through the first few months of the year it will be
fiscal policy and monetary policy which are at the forefront of
people’s minds,” said Paul Robson, a senior currency strategist at
Royal Bank of Scotland Group Plc in London. “There was a risk of
some pullback” after the dollar initially weakened yesterday, he
said.
The dollar advanced 0.6 percent to $1.3111 per euro at 6:27
a.m. New York time and reached $1.3094, the strongest level
since Dec. 14. The yen rose 1 percent to 114.04 per euro. Japan’s
currency gained 0.4 percent to 86.98 per dollar after
depreciating to 87.36, the weakest since July 2010.
Pound Drops Against Dollar as House Prices
Unexpectedly Fall
The pound declined against the dollar as a report showed house
prices fell last month, signaling the U.K.’s economic recovery will
be slow.
Sterling strengthened for a second day versus the euro. The
average cost of a home in Britain slipped 0.1 percent in
December, Nationwide Building Society said in an e-mailed
statement today. The median prediction of 11 economists
surveyed by Bloomberg was for prices to remain unchanged.
From a year earlier, values were down 1 percent, the Swindon,
England-based customer-owned lender said.
The pound lost 0.2 percent to $1.6229 at 8:40 a.m. London time,
after reaching $1.6381 yesterday, the strongest level since Aug.
30, 2011. Against the euro, the pound gained 0.1 percent to
81.07 pence.
U.K. gilts were little changed, with the 10-year yield at 1.99
percent. Yields jumped 16 basis points yesterday.
TECHNICAL INSIGHT
USD INR (Jan 13 – Expiry)
USDINR is in strong trend. We continue to maintain BULLISH
View on the pair.
Buy near 54.45 SL 54.30 for possible TGT of 54.65/54.85/55.10
EUR INR (Jan 13– Expiry)
Weakness in EURUSD can be felt in EURINR also. It’s prudent
to look for rise to sell.
Sell near 72.06 SL 72.25 possible TGT 71.80/71.59
GBP INR (Jan 13 – Expiry)
Pound can also be looked to Sell at higher levels.
Sell near 88.85 SL 89.05 possible TGT 88.56/88.35
JPY INR (Jan 13 – Expiry)
Yen takes cues from USDINR.
Prudent strategy will be watch for 1st hour of trade, then take
position, in direction of USDINR.
