Rupee dropped for a third straight session, its worst falling streak since late-January, as profit-taking in the domestic sharemarket by offshore investors hurt the local unit. Overseas investors, the primary drivers behind the stock market gains, sold cash shares worth 216.3 million rupees ($3.59 million) and equity derivatives worth 12.18 billion rupees on Tuesday – their second straight session of selling.
India’s wholesale prices-based inflation (WPI) accelerated to a three-month high of 5.7 percent in March, driven mainly by higher food and fuel costs, government data showed. The headline inflation rate, which measures inflation at the factory gate, rose 4.68 percent in February, its slowest pace in nine months, raising expectations that the Reserve Bank of India ( RBI) would leave its key policy rates unchanged in the coming months to promote growth.
The latest figures shrink the room for the RBI to adopt a wait-and watch approach. The partially convertible rupee closed at 60.37/38 per dollar compared with 60.23/24 on Tuesday. Gains in other Asian currencies after strong China growth numbers, however, limited the fall in the rupee. In the offshore non-deliverable forwards, the one-month contract was at 60.75 while the three-month was at 61.53.
Technically market is under fresh buying as market has witnessed gain in open interest by 0.74% to settled at 244305 while prices up 0.0725 rupee, now USDINR is getting support at 60.265 and below same could see a test of 60.1675 level, And resistance is now likely to be seen at 60.4975, a move above could see prices testing 60.6325.
MCX-SX EURINR Apr 2014
Euro remained higher against the dollar as slightly stronger than forecast Chinese first quarter growth data supported market sentiment. Italy’s current account balance for February turned to surplus from a deficit in the same month last year, figures from the Bank of Italy revealed. The current account showed a surplus of EUR 298 million versus a deficit of EUR 1.323 billion a year ago. The trade surplus grew significantly, while the deficit in the services trade widened.
A measure of the future economic situation in Spain dropped in February, after rising in the previous month, a survey by the Conference Board showed. The think tank’s leading economic index for Spain fell 0.2 percent monthly in February, after rising a revised 0.9 percent in January. In December, the index dropped 0.2 percent.
The fall in the leading index came with large declines in the Spanish contribution to Euro M2 and the order books survey more than offsetting the increases from job vacancies and the inverted yield spread, the survey said. Eurozone annual inflation slowed as initially estimated to a 52-month low in March, while core inflation fell more than expected, final data from Eurostat showed. Inflation fell to 0.5 percent from 0.7 percent in February.
Technically market is under short covering as market has witnessed drop in open interest by -5.64% to settled at 17472 while prices up 0.3475 rupee, now EURINR is getting support at 83.4625 and below same could see a test of 83.2025 level, And resistance is now likely to be seen at 83.86, a move above could see prices testing 83.9975.
MCX-SX GBPINR Apr 2014
GBP gained after data showed that the U.K. unemployment rate fell to a five year low in the three months to February, bolstering the outlook for the wider economic recovery. The U.K. household finance index rose to a record high in April as households reported the least marked squeeze on finances since the start of the survey in February 2009, survey data from Markit Economics said.
The household finance index, which measures overall perceptions of financial well beings, rose to 43.1 in April from 41.9 in March. The outlook for financial well being over the coming 12 months rose to a record 51.9 from 49.1. The U.K. unemployment rate declined below the 7 percent threshold during three months to February, data from the Office for National Statistics showed.
The jobless rate was 6.9 percent of the labor force, down from 7.1 percent in September to November period, and below 7.9 percent posted in three months to February 2013. Consumer price inflation in the U.K. eased to the lowest level in four-and-a-half years during March and house price growth accelerated sharply in February, separate figures from the Office for National Statistics showed.
Technically market is under short covering as market has witnessed drop in open interest by -13.67% to settled at 9918 while prices up 0.55 rupee, now GBPINR is getting support at 101.01 and below same could see a test of 100.5425 level, And resistance is now likely to be seen at 101.7675, a move above could see prices testing 102.0575.
MCX-SX JPYINR Apr 2014
Yen dropped hit by comments by Japan’s finance minister that traders took as a sign of future buying by its giant state pension fund of Tokyo stocks. Japan’s industrial production declined as estimated in February, final data from the Ministry of Economy, Trade and Industry showed. Industrial production was down 2.3 percent month-on-month in February, in line with preliminary estimate.
On a yearly basis, output plunged 7 percent. The decline in shipments was confirmed at 1 percent. At the same time, inventories dipped 0.9 percent instead of the initial estimate of 0.8 percent. The members of the Bank of Japan’s monetary policy board said that Japan was seeing a moderate economic recovery which is likely to continue, minutes from the board’s March 10 and 11 meeting revealed.
The board members added that the country appears to finally be on the right track in its war with deflation, as inflation finally appears to be rising. An index measuring the prices of domestic corporate goods in Japan was flat on month in March, the Bank of Japan said on Friday – standing at 102.8. That missed forecasts for an increase of 0.1 percent following the upwardly revised 0.1 percent contraction in February (originally -0.2 percent).
Technically market is under fresh selling as market has witnessed gain in open interest by 5.47% to settled at 3145 while prices down -0.1275 rupee, now JPYINR is getting support at 58.98 and below same could see a test of 58.845 level, And resistance is now likely to be seen at 59.235, a move above could see prices testing 59.355.