Currencies World Friday, June 20, 2014 …

Advertisement

MCX-SX USDINR Jun 2014

Rupee fell as the worsening crisis in Iraq threatened to disrupt oil supplies but recovered from session lows after state-owned banks sold dollars, likely on behalf of the central bank. A measure of future economic situation in India improved for the third straight month in May, though at a slower pace than in the previous month, a survey by the Conference Board showed. The Conference Board leading economic index rose 0.7 percent monthly in May, after a 1.4 percent increase in April. In March, the index moved up 0.3 percent.

The rupee had revisited the near 2-month low of 60.55 per dollar earlier in the session, and retreated after the central bank sold the greenback via state-run banks starting around 60.53 rupee levels. On Tuesday, central bank governor Raghuram Rajan assured markets that India is watching the situation in Iraq, but despite the uncertainty the domestic economy is better prepared to deal with any shocks on the external front. fall in domestic stocks due to waning risk appetite added to the rupee’s losses.

The dollar also notched up broader gains against most currencies ahead of the outcome of the U.S. Federal Reserve’s two-day meet later in the day. Technically market is under short covering as market has witnessed drop in open interest by -6.31% to settled at 296620 while prices up 0.275 rupee, now USDINR is getting support at 60.18 and below same could see a test of 59.975 level, And resistance is now likely to be seen at 60.605, a move above could see prices testing 60.825.

USDINR Intraday Highlights
• USDINR trading range for the day is 60.01-60.86.
• Rupee fell as the worsening crisis in Iraq threatened to disrupt oil supplies but recovered from session lows after state-owned banks sold dollars.
• The Reserve Bank of India has been spotted intervening to check the rupee’s falls in the past few sessions.
• RBI infuses Rs 100.02 bln via 2-day term repo at 8.03% cutoff rate
• SELL USDINR BELOW 60.35 SL 60.50 TGT 60.15-60.00

Related Articles:

StriveBlue Home|Poompugar Shoppings